Can the pilot policy of returnee entrepreneurship promote labor income?

This study highlights the transformative potential of returnee entrepreneurship strategies in mitigating enduring structural disparities between urban and rural labor markets. The research experimentally demonstrates how urban-to-rural knowledge transfer and market integration processes rejuvenate regional economies, establishing a vital connection between entrepreneurial return migration and sustained income development for rural people. The findings from a rigorous quasi-experimental analysis indicate that returning migrants stimulate two income-enhancing dynamics: first, by connecting rural enterprises with urban value chains via digital infrastructure and logistics improvements, thus facilitating access to premium markets; second, by introducing urban managerial expertise and technical skills that enhance workforce productivity and skill valuation. The policy framework counterbalances years of one-sided urbanization, illustrating how the purposeful reversal of human capital exodus can transform rural economies from labor-exporting peripheries into innovation centers. These observations highlight the necessity of integrating circular migration models into national development agendas, providing a replicable framework for reconciling regional differences while tackling the interconnected issues of urban congestion and rural economic stagnation. The data frames returnee entrepreneurship as an income intervention and a systemic answer for rebalancing China's urban-rural growth paradigm in the digital age.