Abstract
The Internet usage in rural areas has already greatly improved the quality of rural life and income level of rural residents in China. However, there is a lack of discussion on the impact of Internet use on the income of returning migrant workers. This paper investigates the impact of Internet use on the income of returning migrant workers, its potential channel, as well as family income categories and consumption categories as the extension by using the data of CLDS from 2014 to 2018. We find that, firstly, Internet use can significantly improve the total income level of returnees, and this conclusion is not changed after considering the endogeneity problem and do several other robust checks. Secondly, the accumulation of social capital, the accumulation of material capital and the improvement of entrepreneurial probability are the three main channels for the Internet to improve the income of returnees. Heterogeneity analyses show that compared with western regions, low-income groups and religious believers, Internet use in central and eastern regions, high-income groups and non-religious returnees has a stronger impact in promoting income. Finally, the extended analyses show that the use of the Internet mainly improves the non-agricultural income of returning households, and increases family improved consumption as a result. This paper indicates that the government should further strengthen the policy of Internet use of returnees to help them improve their income level and quality of life.