Digitalization and the Urban-Rural Education Gap: Evidence from China's Rural Distance Compulsory Education Project

Abstract

Public investment in the information and telecommunications technology (ICT) for rural basic education is crucial for promoting the sharing of high- quality educational resources urban and rural areas and advancing educational equity. Utilizing data from the 2015 China 1% Population Sample Survey, this study evaluates the impact of the “Pilot Project for Modern Distance Education in Rural Primary and Secondary Schools” on educational equity. We analyze these effects through two lenses: the urban-rural education gap and inter-generational educational mobility within rural areas. Our findings reveal a dual effect: while a 100-yuan increase in per-student funding from the project narrows the urban-rural attainment gap by approximately 12.80%, it simultaneously diminishes relative inter-generational mobility within rural communities. Specifically, the correlation between the educational rank-orders of parents and their children increases by roughly 9.52%, suggesting a strengthening of educational persistence. To explore the mechanisms behind these divergent results, we conduct an analysis based on theoretical models of public education investment and human capital accumulation. The analysis demonstrates that although the project promotes overall human capital formation in rural areas, individuals from advantaged family backgrounds benefit disproportionately. This skewed distribution of benefits stems primarily from uneven improvements in educational quality resulting from the project’s implementation strategies. Heterogeneity analysis further indicates that females and children from wealthier households experience greater gains, while local fiscal preferences and managerial incentives influence the extent to which policy effects are realized. We conclude that while advancing rural distance education remains vital, policy focus should prioritize equitable fund allocation and the establishment of robust oversight mechanisms to ensure that educational informatics investments realize their potential for inclusive growth.