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The impact of the digital divide on household wealth accumulation

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  • Li, Zhe
  • Zhi, Chuyu
  • Li, Qinghai
  • Qin, Hua

Abstract

As the digital economy evolves rapidly, the digital divide has become increasingly salient and emerged as a pivotal factor influencing household wealth accumulation. Drawing on data from the 2019 China Household Finance Survey (CHFS), this study examines the impact of the digital divide on household wealth accumulation and its underlying mechanisms. The results demonstrate that the digital divide significantly curtails household wealth accumulation. This adverse effect is particularly pronounced among urban residents, those in the eastern regions, and areas with higher levels of marketization. Mechanism analysis indicates that the digital divide exerts a negative influence on wealth accumulation by impeding access to credit and diminishing social interactions. This finding underscores the profound impact of the digital divide on economic inequality and offers crucial policy insights for mitigating the digital divide and fostering common prosperity.

Suggested Citation

  • Li, Zhe & Zhi, Chuyu & Li, Qinghai & Qin, Hua, 2025. "The impact of the digital divide on household wealth accumulation," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325011924
    DOI: 10.1016/j.frl.2025.107934
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    1. Wang, Lina & Zhang, Haiyang, 2026. "Digital infrastructure, risky financial investment, and household wealth," Finance Research Letters, Elsevier, vol. 87(C).

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