Effect of place-based policies on the digital economy: Evidence from the Smart City Program in China

Although place-based policies have already been extensively evaluated in the literature, in this study, we focus on a novel type of place-based policy, the Smart City Program (SCP), which aims to foster the development of the local digital economy. Using the data of China Family Panel Studies, we evaluate the effects of SCP on employment, income, and social security. We reveal that SCP substantially promotes employment and wages, especially in urban areas and information industries rather than rural areas and traditional industries. These results indicate that despite the substantial economic benefits of SCP, the potential inequality it causes should also be considered by policymakers.