The Impact of the Digital Economy on Health Inequality: Micro Evidence From China

In the context of China's goal of pursuing health equity and the economic context of the booming digital economy, it is important to analyse whether the digital economy has mitigated income-related health inequality and how it works.

By matching urban macro-data with individual micro-data, the study obtains mixed panel data at the individual level for five periods from 2012 to 2020. The entropy method is used to comprehensively measure both the level of urban digital economy development and residents' health. The concentration index method was used to measure the extent of health inequality between residents at different income levels. Furthermore, the study uses the recentered influence function (RIF_CI_OLS) regression model to empirically test the impact of the digital economy on health inequality and its underlying mechanisms.

We found that, first, the digital economy significantly alleviates health inequality among groups with different income characteristics, by providing year-by-year insights into the contribution of the digital economy to health inequality, we find that the digital economy plays a significant and positive long-term role in promoting health equity. Second, a mediated effects model is used to test the mechanisms by which the digital economy mitigates health inequality. The results show that the digital economy reduces health inequality between groups with different income characteristics by increasing the accessibility of healthcare services to the population. Third, there is obvious regional and individual heterogeneity in the impact of the digital economy on health inequality. The digital economy has a greater mitigating effect on health inequality among residents of urban, eastern, and central regions. The impact of the digital economy on health inequality does not show significant heterogeneity in terms of gender, but there is a significant differential effect in terms of age, with the digital economy significantly alleviating health inequality in the 45-60 years old group, and the effect on the other age groups is statistically significant. Overall, the digital economy plays a significant positive role in narrowing health inequality among different income groups. Although its facilitating effect is relatively weak in regions with underdeveloped digital economies, in the long term, as digital technology improves, the inclusive effect of the digital economy will gradually emerge, promoting the equitable sharing of health benefits among various groups and thereby further promoting health equity.

Strengthening digital infrastructure, promoting the development of the digital health industry, and improving the digital literacy of the population-especially by increasing digital support for less-developed regions such as the west and rural areas, as well as for disadvantaged groups such as those with low incomes and low education, and the elderly-will ensure that the health dividends brought about by the digital economy benefit the entire population.