The research attempts to estimate how the use of WeChat, the most popular mobile social networking application in contemporary China, affects rural household income.
Our materials are 4,552 rural samples from the Chinese General Social Survey, and a treatment effect (TE) model is employed to address the endogeneity of WeChat usage.
The results prove that WeChat usage has a statistically significant and positive correlation with rural household income. This conclusion remains robust after using alternative variables to replace the explanatory and dependent variables. Our research provides two channels through which WeChat usage boosts rural household income, namely, it can promote their off-farm employment and participation in investment activities.
Theoretically, the study provides several micro-evidences for understanding the impact of mobile social networks on rural household welfare. Further, our findings may shed light on the importance of digital technology applications in rural poverty alleviation for developing countries.
