The technology dividend and the digital divide: A political economy analysis of the impact of the digital economy on income inequality in China

As the economy grows, the digital economy has had a profound impact on multiple fields in China, particularly on the income gap. Some research believes that the digital economy helps reduce the income gap, while others disagree. This research aims to determine the impact of the development of the digital economy on the income gap within China. The research uses the literature review method to examine the impact of the digital economy, as well as analyzes typical cases to display the observation. The conclusion is that the digital economy has dual influences on the income gap, whereas, in the long run, the digital economy has a greater impact on decreasing the income gap in China. The research also points out the salient role of the government in regulating the digital economy.