Does Internet Use Improve the Income of Residents? —Empirical Evidence from CGSS2017

Abstract

Abstract The Internet penetration rate rises sharply in recent years in China. This change has had a significant impact on residents’ income. By using Chinese General Social Survey (CGSS) data set, this paper investigates whether residents who use the Internet earn a higher income than similar residents who do not use the Internet by using propensity score matching. The results show that there is a premium associated with Internet use. Estimates suggest that a premium for residents who use the Internet is around twice as much for residents who do not use the Internet. Additionally, this paper finds that the inlome differences between using the Internet and not using the Internet for groups of middle-aged and elderly resident and agricultural household registration residents are more significant. Based on the research results, several relevant policy implications are presented to improve resident’s income.