The Impact of Rural E-Commerce on Farmers’ Income Gap: Implications for Farmers’ Sustainable Development

Income inequality impedes rural economic development. As the digital economy advances, e-commerce (EC) offers a novel solution to reduce rural income inequality. Based on the framework of the equality of opportunity theory, this research utilizes data from China Rural Revitalization Survey, using the RIF model and mediation effect model to investigate the influence and mechanisms of e-commerce operations (EOs) on the farmers’ income gap (FIG), while also analyzing the heterogeneity of EO’s effects on the FIG. Consequently, the impact of the varying scales and modes of EOs on the FIG is further examined. The findings indicate that EO can substantially diminish the FIG, as corroborated by robustness and endogeneity tests. The findings of the intermediate effect indicate that EO diminishes the FIG by reducing the disparity in labor endowment. The heterogeneity study results indicated that EOs are more effective in reducing the FIG in western China, major grain-producing areas, and mountainous areas. Further discussion reveals a stronger reduction effect of large-scale and platform EC. This study provides micro-level evidence that the digital economy empowers farmers for sustainable development and prosperity. The government should improve rural EC support and create a mechanism for disadvantaged rural populations. To reduce EC development discrepancies and promote farmer equity, specific assistance programs for undeveloped regions are needed. Local governments can also strengthen skill training programs for farmers, especially low-income ones, to boost labor skills. Finally, they can assist rural EC’s transformation to large scale and flat, maximize its role in employment, and narrow the FIG.