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Does the digital economy amplify household income uncertainty? Evidence from China

Author

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  • Zhai, Chenzhe
  • Hu, Debao
  • Dong, Junting
  • Jin, Ming

Abstract

This study examines the impact of the digital economy on household income uncertainty, addressing a gap in the literature on its broader implications. Using data from the China Family Panel Studies (2018–2022), we explore whether and how the digital economy affects household income volatility. Our analysis reveals that the digital economy amplifies income uncertainty, with financial market participation, entrepreneurship, and employment status playing key roles in this process. Heterogeneities exist across different income levels, regions, urban and rural areas and education levels. These findings offer new insights into the broader effects of digitalization and highlight the need for targeted policies to mitigate its negative impacts, enabling households to better adapt to the challenges posed by the digital economy.

Suggested Citation

  • Zhai, Chenzhe & Hu, Debao & Dong, Junting & Jin, Ming, 2026. "Does the digital economy amplify household income uncertainty? Evidence from China," Economic Modelling, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:ecmode:v:158:y:2026:i:c:s0264999326000477
    DOI: 10.1016/j.econmod.2026.107518
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