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Contents Introduction

China’s fertility rate has been on a downward trend since the adoption of the one-child policy in 1979. Internet use is among the promising technological changes that may solve low fertility issue by income effect and improving work-life balance which promotes fertility intention. However, Internet use may also reduce fertility intention by cultivating modern value of fertility and substitution effect. Therefore, whether Internet use improve or hinder fertility intentions must be empirically tested. As no studies have examined impact of Internet use on fertility intention addressing unobserved heterogeneity, this study uses panel data and instrumental variables method to fill the gap in the literature. Using two-wave panel data from the 2014 and 2018 China Family Panel Studies, this study investigates the impact of Internet use on fertility intention. This study finds that Internet use improves fertility intention. Moreover, while the frequency of Internet use does not improve fertility intention, attitude toward the Internet does. Furthermore, there are significant differences by age, marital status, gender, hukou, and educational background. Finally, Internet use affects fertility intention through higher household income.