Objective/Meaning In the wake of the digital economy wave, exploring new avenues and methods to mitigate the economic vulnerability of resident households has emerged as a critical issue of our time.

Methods/Procedures This study draws on the 2014-2020 four-wave micro-panel data from the China Family Panel Studies (CFPS) and employs panel regression, mediation analysis, and other methods to empirically examine the impact of digital participation on the economic vulnerability of resident households.

Results/Conclusions The findings indicate that digital participation plays a crucial role in significantly reducing the economic vulnerability of resident households. Furthermore, through interaction analysis and heterogeneity tests, this paper reveals that the mitigating effect of digital participation is particularly pronounced in households with lower educational attainment and income levels. Additionally, significant regional disparities are observed, with the "digital dividend" resulting from the digital participation of resident households being more pronounced in economically underdeveloped regions such as the Northeast, Northwest, and Southwest. Finally, the mediation effect tests uncover that digital participation effectively mitigates the economic vulnerability of resident households through multiple mechanisms, including enhancing social capital, promoting non-agricultural employment, and shaping risk preferences.