Broadband Infrastructure and Happiness of Rural Households in China

Through an analysis of the Chinese labor-force dynamics survey (CLDS) data, our study investigates the relationship between broadband infrastructure and happiness among rural households. By leveraging the “Rural BROADBAND” project as an exogenous shock for broadband infrastructure and employing a difference-in-differences (DID) framework, we find that households benefiting from this project experience higher levels of overall happiness after controlling for observables. We put forth two plausible explanations for this noteworthy finding. First, broadband infrastructure facilitates social connections among households by enabling the use of internet-based communication applications. Second, it enhances convenience in daily life by expanding internet accessibility. Furthermore, our research reveals that the positive impact of the broadband construction project on the overall happiness of rural households increases with household income.