The Impact of Digital Rural Construction on the Formation of the Rural Middle Class: Evidence From China

ABSTRACT As a crucial part of rural society, the rural middle class is irreplaceable in driving economic development and social progress in rural areas. This study utilizes microlevel data from the China Family Panel Studies and county‐level data on the Digital Rural Construction Index to examine the impact of digital rural construction on the formation of the rural middle class. The findings indicate that digital rural construction significantly promotes the formation and expansion of the rural middle class. This conclusion holds even after a series of robustness tests. Mechanism analysis reveals that labor mobility, land transfer, and financial participation are critical pathways through which digital rural construction fosters the formation of the rural middle class. Heterogeneity analysis shows that the positive impact of digital rural construction on the formation of the rural middle class is more pronounced in the eastern regions, among highly educated groups, and within the middle‐aged and younger populations. However, digital rural construction may exacerbate the digital divide across areas, education levels, and age groups, resulting in a “Matthew effect” and uneven development of the rural middle class. The results of this study provide new evidence on the role of digital rural construction in expanding the rural middle class.