Rural Households' Internet Use on Common Prosperity: Evidence from the Chinese Social Survey

Based on microdata from the Chinese Social Survey (CSS2019) describing 6097 rural households, this paper uses the weighted average method to measure the level of internet use and describe common prosperity in terms of "comprehensive" prosperity (measured with per capita income level) and "universal" affluence (measured with income inequality). Subsequently, the ordinary least squares method is used to estimate the common prosperity effect of internet use. The research draws the following conclusions. (1) Internet use significantly raises the per capita income level of rural households, reduces income inequality between households, contributes to "comprehensive" prosperity and "universal" affluence, and realizes the goal of common prosperity. Furthermore, this paper uses two-stage least squares, limited information maximum likelihood, propensity score matching, replacement and combination of variables, simultaneous quantile regression, and exclusion of outliers to test the robustness of the baseline regression results, which remains robust after a series of tests. (2) Enhancing the use of the Internet can promote non-agricultural employment, cause a reallocation of labor time and income, and increase the proportion of non-agricultural work time and income, which in turn can affect the level of per capita income of rural households and the degree of income inequality between households, contributing overall to achieving the goal of common prosperity. Non-agricultural employment is a major mechanism by which internet use influences common prosperity. (3) The common prosperity effect of internet use in rural households is affected by the level of regional innovation development, the degree of digital economy development, and the natural geographical location, showing a clear heterogeneity.