Does digital economy affect the happiness of older adults?

Introduction The happiness of older adults is considered as an important indicator that affects their life satisfaction and mental health situation. The association between digital economy development and happiness among older adults remains unclear. This study aimed to investigate the association and mechanism. Methods A total of 8,665 respondents aged 60 and above were collected from the 2020 China Longitudinal Aging Social Survey (CLASS). This study linked micro-level wellbeing measures to a city-level digital economy index that combines internet development indicators with the Peking University Digital Financial Inclusion Index. Ordered response models are estimated with extensive individual and city controls. This research also implemented an instrumental-variable strategy, complemented by propensity score matching and robustness checks. Results Digital economy was positively associated with older adults' happiness (OR = 3.022, P < 0.01). The association was not significant among offline older adults, but was strong among internet users (OR = 6.456, P < 0.01). Under the digital usage divide, the association was stronger for older adults with high device proficiency (OR = 3.995, P < 0.01) and for those using the internet at least once per week (OR = 6.373, P < 0.05) or daily (OR = 5.646, P < 0.01). Under the digital skills divide, stronger associations were observed among older adults whose primary internet purpose was social activities (OR = 6.973, P < 0.01), information acquisition (OR = 4.315, P < 0.01), leisure and entertainment (OR = 3.561, P < 0.01), and investment and consumption (OR = 13.210, P < 0.01). Mechanism tests further indicated amplification through digital government (OR = 2.425, P < 0.01), social capital (OR = 1.130, P < 0.1), and improved access to health services (OR = 1.728, P < 0.01). Conclusion This study underscores the importance and role of digital economy for happiness promotion among older adults. The findings imply that digital infrastructure expansion alone is unlikely to deliver inclusive wellbeing improvements. Narrowing access gaps and strengthening digital capabilities are critical to ensure that aging populations share in digital dividends. Policy should shift from facility building to digital skills and usage support.