Digital Technology, Regional Economic Resilience and Income Disparities

Using panel data from China’s first- and second-tier cities spanning from 2013 to 2021, this study empirically investigates the relationship between digital technology and income disparity through panel fixed-effects and mediation effects models. The findings reveal that the impact of digital technology on income disparity follows a U-shaped pattern, initially narrowing the income gap before subsequently widening it. Additionally, regional economic resilience is found to fully mediate the relationship between digital technology and income disparity. Geographic heterogeneity analysis shows that the effect of digital technology in narrowing the income gap is most pronounced in the western region, weaker in the central and eastern regions, and least significant in the northeastern region.