Has the Digital Economy Enhanced the Income Distribution Effect Among Industries? Evidence from China

Zhixin Zhang (), Hongxin Xu and Zhen Qiao
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Zhixin Zhang: School of Economics and Business Administration, Heilongjiang University, Harbin 150080, China
Hongxin Xu: School of Economics and Business Administration, Heilongjiang University, Harbin 150080, China
Zhen Qiao: School of Economics and Business Administration, Heilongjiang University, Harbin 150080, China

Sustainability, 2024, vol. 16, issue 20, 1-20

Abstract: A powerful correlation exists among the advancement of the economy of digital, sustainable economic advancement, and income distribution. The advancement of the digital economy provides a significant motivating factor for sustainable economic development, while sustainable economic development provides a strong guarantee for income distribution, and the improvement of income distribution is also conducive to sustainable economic development. What is the connection between the digital economy and income distribution? This is the focus of this paper and also an important way to clarify the association between the advancement of the digital economy, sustainable economic development, and income distribution. This paper aims to explore whether the advancement of the digital economy has enhanced the effect of income distribution among industries and examine the role of production efficiency and human capital. Through the use of the multidimensional fixed-effect model, this study finds that the development of the digital economy is favorable to enhancing the income distribution effect among industries, and this income distribution enhancement effect is more prominent in large-scale non-state-owned enterprises. In addition, we also find that digital transformation can dramatically improve the total factor productivity of enterprises, thus enhancing the income distribution impact among industries. The promotion of digital transformation can also improve the quality of human capital in enterprises, strengthen the income distribution impact between industries, and reduce the income disparity among industries. The industry income gap measurement method and the industry perspective of income distribution adopted in this paper contribute to the existing literature and will contribute to the development of income distribution equity in the era of the digital economy and also provide a new vision for sustainable economic development from the perspective of income distribution.

Keywords: digital economy; income gap among industries; enterprise digital transformation; production efficiency; human capital (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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