Intensify or Alleviate? The Impact of Rural Digital Development on Rural Income Inequality: Evidence From the Chinese Household Level

ABSTRACT Rural income inequality is a significant barrier to social equity and sustainable economic development, particularly in pursuing common prosperity and urban–rural integration. Using China Family Panel Studies data and the rural digital development index, this study finds that rural digital development significantly reduces rural income inequality. Human capital enhancement, land transfer facilitation, non‐agricultural employment and financial participation are key channels. The mitigation effect is particularly strong in eastern regions, higher‐educated households and younger and middle‐aged families, benefiting primarily low‐ and middle‐income groups. Our results emphasize digital infrastructure's importance in promoting inclusive growth and contributing to rural revitalization and common prosperity.