From Grasslands to Markets: Digital Rural Development and Herders’ Non-Farm Employment

Although natural resources and geographical factors limit herders’ employment options, the development of digital rural helps herding households compete on an equal footing by expanding employment opportunities. Using survey data collected from 2790 herder households in 26 counties across Gansu, Qinghai, Sichuan and Tibet from 2023 to 2025, this study examines the relationship between county-level digital rural development and non-farm employment. We find that digital rural development is positively associated with the likelihood that household heads engage primarily in non-farm employment. This finding remains stable across a series of robustness and endogeneity checks. Moreover, the positive association is weaker in areas with a larger primary-industry base and among households engaged in forage cultivation, suggesting that local production structures and household labor commitments constrain the conversion of digital opportunities into employment diversification. Further analysis indicates that digital finance and digital consumption are two potential channels through which digital rural development supports non-farm employment. These findings highlight that the employment benefits of digital development depend not only on digital access but also on the flexibility of household labor allocation and the availability of non-farm opportunities in pastoral areas.