Digital Infrastructure and Common Prosperity: An Influence Mechanism and Effect Test.

Common prosperity is an important goal of China's modernization efforts, and narrowing the income gap among different regions and populations is crucial to achieving common prosperity. The construction of digital infrastructure has significantly boosted productivity and facilitated the diffusion of technology in less developed regions, leading to notable changes in labor employment and the income gap, which aligns with the goal of common prosperity. This paper explores the mechanism through which digital infrastructure influences common prosperity with a focus on employment, using panel data from 30 provinces in China between 2011 and 2021 for an empirical test. The research finds that digital infrastructure significantly promotes common prosperity. By expanding employment and increasing labor remuneration, the influence of digital infrastructure on common prosperity exhibits regional heterogeneity and a nonlinear threshold effect. The research suggests that the government should enhance investment in and construction of digital infrastructure, reduce the digital divide through policy support in rural areas, promote digital employment and skills training, and encourage industrial integration and enterprise participation. [ABSTRACT FROM AUTHOR]