The impact of digital infrastructure on the consumption of rural-to-urban migrant households in China

This paper evaluates the impact of digital infrastructure on rural-to-urban migrants’ consumption using a difference-in-differences framework based on the staggered rollout of the Broadband China Program (BCP). Using China Migrants Dynamic Survey data, we find that the BCP significantly increases household per capita consumption. Additional results provide suggestive evidence on potential channels and related outcomes, showing that the BCP is associated with higher household income, stronger household financial buffers, and greater urban integration, as reflected in destination-city homeownership and permanent settlement intentions. We also document a pronounced ‘digital divide’ where the consumption gains disproportionately favour high-skilled and new-generation migrants, thereby increasing within-group consumption inequality.