Abstract

This paper utilizes data from the China Migrants Dynamic Survey (CMDS) and the digital economy index at the city level to empirically examine the impact of the digital economy on migrants’ settlement intention. The results reveal a substantial enhancement in migrants' settlement intention due to the digital economy, and these findings remain robust when considering model misspecification, measurement error, and endogeneity of the digital economy. Furthermore, the digital economy contributes to migrants' settlement intention by fostering entrepreneurial activities and augmenting household income. Additionally, we find a significant and positive effect of the digital economy on the settlement intention of migrants with agricultural hukou, while no significant effect is observed for migrants with non-agricultural hukou. Overall, this study offers novel insights into strategies for promoting urbanization.

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