The impact of digital technology use on relocated households’ income stability in China

Ensuring the income stability of relocated households is essential for advancing rural revitalization and achieving common prosperity. While existing research has explored the impact of digital technology on income, few studies have addressed how digital technology use affects income stability. To fill this gap, based on survey data from relocated households in 16 counties across 8 provincial-level regions in China, this study examines the impact of digital technology use on the income stability of relocated households using Ordinary Least Squares (OLS) and Propensity Score Matching (PSM). The results show that digital technology use improves both income and income stability, with stronger effects at higher levels of use. This impact is driven by better access to information acquisition and enhanced human capital. Additionally, digital technology helps stabilize the income of households facing downward volatility. The income stabilizing effect is particularly significant among relocated households in central regions, rural resettlement areas, and those with higher education levels. Furthermore, digital literacy amplifies the positive impact of digital technology on income stability. These findings offer valuable insights for policymakers aiming to promote digital technology use to ensure the income stability of relocated households and foster common prosperity.