Abstract: Based on the data of 282 cities at and above the prefecture level in China from 2011—2021, this paper uses a two-way fixed-effect model and a nonlinear model to explore the impact of the development of digital economy on urban wage income. The empirical results show that there is an inverted U-shaped relationship between the level of digital economy development and urban wage income. Further research finds that the development of digital economy in the eastern region has a significant effect on urban wage income, but not in the central and western regions, and the impact of digital economy development on urban wage income is more significant in cities with high investment in education, and the impact of digital economy development on urban wage income is relatively small in areas with low investment level.