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Early-life adversity and e-commerce adoption in old age: Evidence from China’s Great Famine

Author

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  • Huang, Xiaohao
  • Tang, Lixin

Abstract

While China’s e-commerce market is highly developed, low adoption among the elderly has created a significant generational welfare gap. This paper examines the determinants of this gap by investigating the impact of early-life exposure to China’s Great Famine (1959–1961) on e-commerce adoption in old age. Using a difference-in-differences framework, which leverages geographical and cohort variation in famine severity, we find that a one-standard-deviation increase in famine intensity reduces e-commerce adoption by 0.82 percentage points for individuals exposed at ages 3–12 and by 0.76 percentage points for those exposed at ages 13–20. Relative to baseline adoption rates of 1.5% and 0.5%, these effects are economically sizeable. Mechanism analysis suggests that reduced trust is the primary channel, with increased frugality also contributing to lower adoption. We find little evidence that famine-induced changes in health conditions or social networks play a significant role.

Suggested Citation

  • Huang, Xiaohao & Tang, Lixin, 2026. "Early-life adversity and e-commerce adoption in old age: Evidence from China’s Great Famine," China Economic Review, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:chieco:v:97:y:2026:i:c:s1043951x2600026x
    DOI: 10.1016/j.chieco.2026.102676
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    Keywords

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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