Digital Literacy, Female Employment, and Gender Income Gap

Abstract This study investigated the effects of digital literacy on female employment and the gender income gap using data from the 2014–2018 China Family Panel Studies. Digital literacy improved female employment participation and employment quality. Heterogeneity analysis showed that women with greater human capital, younger women, and urban residents benefited more in securing employment (the Matthew effect), whereas women with moderately high‐quality employment experienced the greatest improvements in employment quality (the mid‐distribution effect). Two mechanisms through which digital literacy affected female employment were identified: information acquisition and gender role reconstruction. Digital literacy generated higher income returns for women, narrowing the gender income gap. This confirms that digital literacy can reduce the gender digital divide and can empower women to share the benefits of digitalization. The results have important implications for promoting high‐quality and full employment among women and for advancing gender equality.