The Frequencies Of Working With The Internet And The Urban-Rural Wage Income Gap

The Internet is used more frequent in the work.The frequencies of using the Internet at work is different.Whether the frequencies of working with the Internet can affect the individual’s wage income and whether it can affect the wage income gap between urban and rural areas?This thesis has studied these issues.This thesis first examines whether the usage of the Internet at work has increased the wage income.Then the Oaxaca-Blinder method has been used to study the factors which influence the urban-rural wage income gap.Next the mean decomposition and quantile decomposition methods are used to study the factors which influence the wage income gap between urban and rural areas after the sample has been divided into high frequencies group and low frequencies group.The study found that the usage of Internet at work has significantly improved the individual’s wage income.Through the decomposition of Oaxaca-Blinder,for year 2014,it is found that the usage of the Internet at work has played a role in explaining the wage gap between the urban and rural areas,but this effect is not significant in 2016.When the whole sample was divided according to the frequencies of working with the Internet,through the Oaxaca-Blinder decomposition,for year 2014,there are wage income gap in both groups and the characteristic effect is the main part of the total wage income gap;for year 2016,there are wage income gap in both groups.For the high frequencies group of the year 2016,the characteristic effect can explain the total wage income gap,for the low frequencies group,the backward effect can explain the total effect.Through the quantile decomposition,it is found that for year 2014 and the high frequencies group,there is a significant wage income gap between urban and rural areas,the wage income gap is mainly explained by the characteristic effect after 30^thquantile,the characteristic effect is accruing along the wage distribution;the backward effect is not significant.For the low frequencies group,wage income gap is still significant,characteristic effect is not significant along the wage distribution,the backward effect is significant before the 40^thquantile.For year 2016,there is a significant wage income gap between urban and rural areas in high frequencies group and the wage gap is mainly explained by characteristic effect after 25^thquantile,the characteristic effect is getting bigger along the wage distribution,the backward effect is significant before 50^thquantile and is not significant at other quantiles;in the low frequencies group,the wage gap is not significant at the 10^thquantile but is significant at other quantiles,the characteristic effect is not significant at all quantiles and the backward effect of rural areas relative to urban areas is not significant at 10^thquantile but is significant at other quantiles,the backward effect first increases,then decreases and increases again.In the robustness test,these results are also true.According to the results,people should be encouraged to use the Internet more often in their work.In order to increase the frequencies of rural residents’usage of the Internet when working,the government should take measures to increase the Internet penetration rate in rural areas.Besides,the government should emphasize the construction of Internet as well as improve the Internet infrastructure in rural areas in order to facilitate the use of the Internet by rural residents in their work.In the group with high frequencies of working with the Internet,measures should be taken to increase the labor capital of the workers whose wage income are not located in the low quantile;for the low and middle quantiles of the wage distribution,the individual skill of the workers should be improved and efforts should be made to improve the economic level of rural areas at the same time,because there is a backward effect of rural areas relative to urban areas.In the group with low frequencies of working with the Internet.we should pay attention to the development of rural economic level.