Abstract:While digital technology has brought convenience to residents’ lives, it has also created a prominent problem of digital inequality. Despite China’s significant progress in establishing the world’s largest, technologically advanced, and superior digital infrastructure since the 18th National Congress of the Communist Party, the digital divide among households has not diminished. The widening digital divide has suppressed household consumption and intensified consumption inequality. Simply improving the universality of digital public services is not enough to alleviate the digital divide between families’ digital literacy. Therefore, how to effectively bridge the family digital divide and identify the key objects and pathways of digital literacy promotion plans are practical problems that need to be solved to promote the high-quality development of the digital economy. Based on the China Household Finance Survey (CHFS) in 2015, 2017, and 2019, this paper measures the digital divide and its impact on relative deprivation in household consumption from three aspects of digital technology or tool use. It is found that the digital divide is not conducive to the promotion of household consumption, resulting in relative consumption deprivation, and the conclusion is still valid after a series of robustness and endogeneity tests. Specifically, the impact of the digital divide on basic subsistence consumption weakens while its inhibitory effect on luxury consumption strengthens. The relative degree of consumption deprivation is greater in households with low dependence on male heads of household, mobile payment, rural areas, and low dependency ratio. Mechanism analysis shows that the digital divide intensifies household consumption inequality mainly by weakening family social networks and reducing the probability of starting a family business. Compared with the existing researches, the main expansions and innovations of this paper are as follows: (1) focusing on the digital divide between family digital skills, analyzing the dynamic evolution and impact of the digital divide from the micro level, and revealing the main focus points of national digital economy development and digital public service inclusive work; (2) focusing on the typical structural characteristics of Chinese families, such as “men in charge of the outside, women in charge of the inside” and “old people and young people at home”, exploring the heterogeneity of the digital divide and answering which families are more likely to be deprived of consumption; (3) in line with the theoretical connotation of the relative balance of common prosperity, the measurement of digital and consumption inequality adopts the relative concept and accordingly chooses social network and entrepreneurial behavior as the intermediate mechanism, so as to explore the effective mechanisms to bridge the family digital divide. This paper identifies the effects and pathways of the digital divide from the micro-household level, and reveals that the key targets of the digital literacy promotion plan are male household heads, families with low dependence on mobile payment, rural households, and households with a low dependency ratio. The key to bridging the digital divide is to jointly improve the family digital literacy and the inclusive level of regional digital infrastructure. Relying on digital platforms to expand social networks and optimize the investment and entrepreneurial environment is an effective way. This paper provides a useful reference for promoting the inclusive sharing of digital dividends and high-quality development.