Digital literacy, employment choices, and income disparities among migrant agricultural workers

The investigation of the impact of digital literacy on the income growth and income disparities of migrant agricultural workers is of significant importance for advancing common prosperity among rural farmers. Based on China Family Panel Studies (CFPS) data, this study empirically tests the effect of digital literacy on migrant agricultural workers’ income and income disparities. The results show that improving digital literacy significantly increases the per capita income of migrant agricultural workers’ households and reduces the income gap. These findings remain valid after a series of robustness and endogeneity tests. Mechanism analysis suggests that digital literacy contributes to income growth and narrowing the income gap by influencing migrant agricultural workers’ formal employment, occupational choices, and industry transitions. Heterogeneity analysis reveals that the income growth and gap reduction effects among migrant agricultural workers are more pronounced in the eastern region. However, it is noteworthy that, compared to the new generation and higher-educated migrant agricultural workers, the income growth and gap reduction effects are more pronounced among the older generation and lower-educated migrant agricultural workers. RIF unconditional quantile regression further finds that the income growth effect of digital literacy is strongest at the low-income end and weakens as income quantiles increase, while its effect on reducing income disparities is also concentrated at lower quantiles. Based on these findings, recommendations are proposed, such as improving the incentive mechanism for inclusive digital economy development and enhancing mechanisms for preventing income polarization among the rural migrant population.