Whats the impact of internet use on labor market? Using China Health and Nutrition Survey (CHNS) data from 2004 to 2011, this paper adopts ordinary least square regression and propensity score matching method to estimate the effect of internet use on wage. The results show that there is a positive wage premium to internet user, especially to people with a high school diploma. By using the FFL decomposition method, this paper also analyzes the impact of internet use on wage distribution. The results show that the expansion in internet use between 2004 and 2011 reduced the wage inequality, but widened the wage differences between middle, high wage earners and low wage earners. In addition, the results show that the decrease in the rate of internet use reduced the wage inequality, which was particularly helpful for reducing the wage gap between high wage earners and middle wage earners. Based on the previous research, this paper evaluates the effect of internet use on wage and wage distribution quantitatively. The results above enrich the existing research literature and provide useful policy suggestions for formulating information industrial policy and reducing wage inequality.