Does digital capability reduce the risk of returning to Poverty for the Lifted-out Population?

Enhancing the intrinsic development capacity of the lifted-out population is essential for preventing large-scale poverty recurrence and advancing rural revitalization. With the rapid spread of digital technologies, digital capability has become a key driver of sustainable development for this group. Using data from the 2017 and 2019 waves of the China Household Finance Survey, this study constructs a digital capability index across three dimensions—digital access, usage, and creation—and examines its effect on the risk of returning to poverty. Results show that digital capability significantly reduces this risk, with digital creation exerting a much stronger effect than access or usage. Further analysis reveals that digital capability mitigates the risk of returning to poverty by promoting non-agricultural employment, expanding entrepreneurial opportunities, and improving access to credit. Heterogeneity tests indicate that its protective effect is pronounced among households vulnerable to expenditure-induced poverty (e.g., medical or educational costs) but limited or even adverse for households with disabled members or those receiving subsistence allowances. These findings highlight the need for targeted strategies to strengthen digital capability and sustainably reduce the risk of returning to poverty among the lifted-out population.