Study on the Impact of Internet Usage, Aging on Farm Household Income

Abstract

Increasing farmers’ incomes and empowering rural revitalization through the digital economy are important issues of widespread concern in our society today. From the perspective of aging, this paper uses the 2016, 2018, and 2020 China Family Panel Studies (CFPS) data to examine the impact of Internet usage on farm household income in the realistic context of the severe aging situation in rural areas, to explore the specific mechanisms through which aging plays a role. A further comparative analysis of the heterogeneity of Internet usage and aging effects on different sources of farm household income is performed. The study finds that Internet use by farmers increases household income, but aging diminishes the boosting effect of Internet usage on household income. By reducing off-farm employment and increasing family care, aging reduces the Internet’s boosting effect on farm household income. Among household income sources, Internet usage significantly contributes to the growth of farm household wage income. Aging dampens the growth of all income sources except transfer income. Aging enhances the boosting effect of Internet usage on the transfer income of farm households; however, it weakens its boosting effect on the wage income of farm households. Therefore, there is an urgent need to promote the construction of rural digital infrastructure, improve farmers’ digital literacy, and improve rural pension infrastructure and services, to escort the digital transformation of agriculture and rural areas and the common prosperity of farmers.