• How Digitalization is Closing the Income Gap in China

  • Feb 5 2025
  • Length: 16 mins
  • Podcast

How Digitalization is Closing the Income Gap in China

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  • This podcast reviews an Asian Development Bank working paper that investigates the impact of digitalization on income inequality in China using household-level data. The authors of the paper find that increased digitalization significantly reduces income inequality, especially in less-developed areas and among lower-educated households. This effect remains robust even after accounting for potential biases. The study’s analysis reveals that digitalization boosts income primarily by increasing employment and investment opportunities for lower-income households, as well as business income for entrepreneurs. Episode Art Source: Pixabay
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