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Second-Level Digital Divide Shapes Residents’ Spending Patterns

December 18, 2025
in Social Science
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In an era defined by the rapid evolution of the digital economy, the digital divide remains a formidable barrier, profoundly shaping patterns of consumption among residents. A recent comprehensive study, based on an extensive survey across 15 counties, delves into how disparities in digital engagement—specifically the second-level digital divide—affect consumer behavior in a deeply digitized context. This divide, characterized by differences in how residents use digital technologies rather than mere access, has been identified as a significant inhibitor of consumption, raising important questions about economic inclusivity and the equitable spread of digital benefits.

The study illuminates that the existence of the digital divide significantly suppresses residents’ consumption levels. This inhibitory effect withstands rigorous robustness checks and controls for potential endogeneity, underscoring the reliability of these findings. The analysis reveals a stark trend: as the gap narrows, the likelihood that residents gravitate toward lower levels of consumption diminishes, while the probability of engaging in higher consumption tiers increases. This evidences that the digital divide does not merely reflect a technological gap but actively constrains economic activity and consumer upgrading in digital societies.

A deeper mechanistic exploration underscores the critical role of digital credit as an enabler of consumption. The digital divide curtails access to this form of credit by restricting individuals’ digital participation, with cascading effects on their purchasing power and willingness to consume. Digital financial services, which depend heavily on users’ digital literacy and connectivity, emerge as pivotal tools that facilitate consumer spending and stimulate economic demand, yet these remain inaccessible to many due to the divide.

Importantly, the study’s heterogeneity analysis reveals uneven suppression of consumption across different demographic groups and geographical areas. Urban and rural disparities remain pronounced, with rural areas disproportionately affected by limited digital usage capabilities. Moreover, the impact is most acute among residents over 50 years old, a demographic often struggling with digital adoption, thus highlighting the intersection of age and geography in digital inequality.

This research situates the digital divide not merely as a technological issue but as a multifaceted socioeconomic challenge that directly impedes the realization of a fully digital economy. The findings stress that restricted digital technology use disrupts not only economic activity but also mental health outcomes connected to consumption patterns. Prior literature supports that internet development boosts overall well-being, yet this potential is undermined where digital divides persist, potentially delaying improvements in perceived quality of life at a population level.

Addressing such entrenched inequalities involves targeted policy interventions. The study advocates for governmental prioritization of infrastructure development, especially focusing on remote and rural areas where internet connectivity suffers. By ensuring stable and accessible internet services nationwide, barriers to digital participation can be lowered, creating more uniform opportunities for consumption and economic engagement across regions.

Besides infrastructure, fostering digital literacy, particularly among middle-aged and elderly populations, emerges as a critical policy thrust. Digital literacy training programs must be adequately funded and legally supported to empower these groups, thereby reducing their consumption inhibition and bridging the usage divide. Making digital technologies more user-friendly and accessible to older adults will facilitate their integration into the digital economy and enhance their economic welfare.

Crucially, the study highlights the need for balanced regional development to counteract polarization between urban and rural sectors. Investments aimed at uplifting underdeveloped areas can bridge the existing digital resource chasm, ensuring all residents equally share the fruits of digital progress. Such equitable growth is essential not only for consumption stimulation but for mitigating broader socioeconomic inequalities aggravated by differential digital inclusion.

While the research offers compelling insights, it acknowledges inherent limitations that merit future inquiry. As digital technologies evolve rapidly, the nature and implications of the digital divide are in flux. Future studies incorporating longitudinal data could provide a dynamic perspective on how this divide shapes consumption trends over time, helping to refine theoretical and practical understandings.

Additionally, the current analysis focuses on the second-level digital divide—usage disparities among populations already with near-universal internet access. Subsequent investigations could expand to include the third-level digital divide, which relates to variations in outcomes resulting from digital technology use, thereby fully capturing the nuanced layers of digital inequity affecting consumption.

The study also calls for refining the conceptualization and measurement of the digital divide to capture emerging dimensions accurately. Developing more comprehensive indicators and integrating qualitative data could enrich the understanding of diverse digital experiences among residents, enabling tailored interventions to close the divide effectively.

Finally, although the sample size employed is sufficient for robust conclusions, larger-scale and more diverse data sets could enhance empirical rigor and generalizability. Broader surveys spanning more regions and demographic groups would affirm the findings and support the formulation of nuanced policies to address digital inequality’s complex impact on consumption.

In sum, this investigation lays bare the multifaceted adverse effects of the second-level digital divide on residents’ consumption, emphasizing its role as a critical impediment in the digital economy. The findings urge concerted efforts to close digital gaps, enhance inclusivity, and stimulate consumer upgrading, thereby forging pathways toward a more equitable and prosperous digital society. Bridging this divide is not only a technological imperative but fundamentally an economic and social one, vital for ensuring that no community or demographic is left behind in the digital transformation era.

As governments and policymakers mobilize to build new models of development, integrating digital equity into consumption strategies emerges as an essential priority. By harnessing infrastructure enhancements, digital literacy programs, and balanced regional investments, societies can unlock consumption potentials suppressed by digital disparities. The digital economy’s promise—if equitably shared—can thus translate into robust consumer growth and improved quality of life for all residents.

This study represents a critical step in unpacking the complex interplay between digital inequalities and economic behavior, inviting ongoing dialogue and research to navigate the future of digital consumption. As the digital landscape continues to evolve, sustaining inclusive momentum will require innovation not only in technology but also in policy frameworks that address humans and communities at the heart of this digital revolution.


Subject of Research:
The research investigates the impact of the second-level digital divide, referring to disparities in digital usage rather than access, on residents’ consumption patterns within a digitally evolving economic environment.

Article Title:
The impact of the second-level digital divide on residents’ consumption

Article References:
Dong, Z., Lin, H. & Li, S. The impact of the second-level digital divide on residents’ consumption. Humanit Soc Sci Commun 12, 1938 (2025). https://doi.org/10.1057/s41599-025-06242-4

Image Credits: AI Generated

DOI:
https://doi.org/10.1057/s41599-025-06242-4

Tags: barriers to economic activitycomprehensive study on digital divide effectsconsumer behavior in digital economydigital credit and consumptiondigital divide and consumer upgradingdigital technology usage patternsdisparities in digital engagementeconomic inclusivity in consumptionequitable digital benefits distributionimpact of digital divide on spendingresidents' consumption levelssecond-level digital divide
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