Online shopping and rural‐urban wage inequality

Jiancai Pi and Xinyi Liu

Manchester School, 2025, vol. 93, issue 1, 70-82

Abstract: This paper takes online shopping into consideration, and constructs general equilibrium models to analyze how consumers' dependence on online shopping affects rural‐urban skilled‐unskilled wage inequality. We find that when consumers' dependence on online shopping increases, wage inequality can be conditionally narrowed down, depending on the unskilled labor intensity in the urban manufacturing sector and the possible elasticity of the contract price.

Date: 2025
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