Can Data Elements Facilitate Common Prosperity for Urban Low-Income Residents? An Empirical Analysis Based on the 2014–2020 CFPS Survey in China

As China enters a new stage of development, promoting income growth among low-income groups (LIGs) and expanding the middle-income population are key policy priorities under the 14th Five-Year Plan as well as essential steps toward achieving common prosperity (CP). Using the development index of data elements from 30 provinces (municipalities and autonomous regions) and micro-survey data from 19,596 urban households in the China Family Panel Studies (CFPS) database (2014–2020), we identified urban LIGs through a multidimensional special concern index and empirically analysed the impact of developing data elements on achieving CP for these groups, along with the underlying mechanisms. We found that: (1) The development of data elements significantly helped urban LIGs to achieve CP. (2) The adoption of digital technology positively moderated the relationship between the development of data elements and the achievement of CP among urban LIGs. (3) Mechanism tests revealed that data elements contributed to income growth among urban LIGs by enhancing job opportunities, facilitating financial market participation (FMP), and strengthening social capital participation (SCP), thereby accelerating the attainment of CP. (4) Heterogeneity analysis indicated that the CP effects of data elements were more pronounced among households in regions characterised by lower education levels, lower indices for the development of data elements, and lower deprivation indices. This study offers a theoretical foundation for policymakers to leverage the development of data elements as a key strategy for enhancing the earnings of LIGs and advancing CP, with significant implications for narrowing the income gap, fostering social harmony, and ensuring stability in China.