Based on the 2013–2017 Chinese Family Database and China Household Finance Survey, the study examines the impact of farmland transfer on the income structure of agricultural households. We observe a significant rise in the income of transferred-out households, while that of transferred-in households is unchanged. A further empirical decomposition of income shows a significant increase in both the wage and asset generated incomes of transferred-out households. Although the income generated by transferred-in households through agricultural production and management increases significantly, the decrease in wage income is larger. The study’s empirical designs are robustly tested with propensity score matching and instrumental variables. Moreover, we conduct a comparative analysis of the external constraints faced by the two groups to explore the reasons for the divergence of the income effect. The results show that transferred-in households face highly pronounced external constraints in terms of capital, technology, and farmland size, while transferred-out households face relatively fewer impediments to non-agricultural employment. Our empirical results imply that external constraints can limit the social welfare improvements of agricultural land reform, suggesting that other complementary measures would be required for future policy improvements to work better.
Based on the 2013–2017 Chinese Family Database and China Household Finance Survey, this study examines the effect of farmland transfer on the income structure of agricultural households. We observe a significant rise in the income of transferred-out households, while that of transferred-in households is unchanged. A further empirical decomposition of income shows a significant increase in both the wage- and asset-generated incomes of transferred-out households. Although the income generated by transferred-in households through agricultural production and management increases significantly, the decrease in wage income is larger. The study’s empirical designs are robustly tested with propensity score matching and instrumental variables. Moreover, we conduct a comparative analysis of the external constraints faced by the two groups to explore the reasons for the divergence of the income effect. The results show that transferred-in households face highly pronounced external constraints in terms of capital, technology, and farmland size, while transferred-out households face relatively fewer impediments to non-agricultural employment. Our empirical results imply that external constraints can limit the social welfare improvements of agricultural land reform, suggesting that other complementary measures would be required for future policy improvements to function better.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.