The Relation between Digital Village Construction and Subjective Well-Being

Abstract

With the advancement of the economy and society, policymakers acknowledge the significance of improving rural households' well-being as a crucial factor in promoting sustainable economic and social development. Based on the matching data of China Household Finance Survey and Digital Rural County Index, this study empirically examines the effect and mechanisms of digital village construction on subjective well-being of rural households. The results revealed that digital village construction has a significant improvement in their subjective well-being. The impact of digital village construction is particularly significant in rural areas located in the western regions of China, as well as among households possessing higher levels of human capital. The process through which digital village construction enhances the subjective well-being of rural households involves the augmentation of household income, the promotion of non-farm employment opportunities, and the enhancement of rural governance. This study provides robust micro-empirical evidence highlighting the positive welfare effects of digital rural construction. This study provides insights into the digital village construction within the happiness economy framework, offering a new perspective. The imperative to strengthen rural digital infrastructure and improve farmers' proficiency in modern information skills is a strategic policy aimed at enhancing well-being of rural households.