Digital government and residents’ mental health in China: evidence on potential mechanisms and urban–rural heterogeneity

Background Digital government has become a critical component of contemporary public governance, yet its relationship with residents’ mental health remains insufficiently examined. This study investigates whether digital government development is associated with residents’ mental health in China and how this association varies across urban and rural populations. Methods We linked the 2020 and 2022 provincial Digital Government Development Indices with individual-level data from the 2021 and 2023 waves of the Chinese General Social Survey. Employing a one-period lagged matching strategy within a pooled cross-sectional design, we estimated the association using Ordinary Least Squares (OLS) models. Instrumental variable (IV) estimation was used to address potential endogeneity concerns, supplemented by robustness checks, mechanism analysis, and heterogeneity analysis. Results Digital government development is positively and consistently associated with residents’ mental health. Mechanism analyses suggest that reduced health-related activity limitations and enhanced life happiness may serve as two potential transmission pathways. This positive association appears more stable among rural residents, although the statistical significance of the urban–rural difference should be interpreted cautiously. Further heterogeneity analysis indicates that the association is more evident among individuals with higher human capital, fewer health constraints, and stronger capacity to use digital public services. Conclusion Digital government may have implications beyond administrative efficiency by being linked to residents’ mental health, health capabilities, and psychological resources. To foster inclusive digital governance, policymakers should prioritize health service integration, digital accessibility, service usability, and offline support for vulnerable and structurally disadvantaged groups.