Land Certificated Program and Farmland “Stickiness” of Rural Labor: Based on the Perspective of Land Production Function

Abstract

The instability of farmland rights is the fundamental reason for the decrease in the “stickiness” of farmland in China. The Land Certificated Program (LCP) plays an important role in clarifying the ownership of land and stabilizing the property rights of land, as well as enhancing the land production function. Most existing literature focuses on the impact of the LCP on non-agricultural labor participation, while research on agricultural labor participation is scarce. This paper analyzes the impact of the LCP on farmland “stickiness” based on the perspective of land production function. This paper also applies propensity score matching (PSM) using CLDS data from 2016 and 2018 to evaluate the policy effect of the LCP on farmland “stickiness”, and conducts heterogeneity analysis and the robustness test. In addition, this paper examines the mechanism of the influence of LCP on farmland “stickiness” by using the mediating effect model. The results of this analysis showed that: (1) The impact of the LCP on farmland “stickiness” is significant, as the rate of agricultural labor participation has increased by 4.8% to 4.9%. (2) The incentive effect is heterogeneous, and has significant impacts on non-professional households, as well as on small and medium-sized of farms. (3) The sensitivity test revealed that unobservable factors do not have an impact on the LCP estimation results, and the results of the PSM estimation were robust. (4) The policy effect of the LCP at the village level also confirms the robustness of the promotion effect and the mechanism. (5) Land production function has a partial mediating effect on the impact of the LCP on farmland “stickiness”. Given these results, we must begin to consolidate, expand and make good use of the results of the LCP, support the connection between smallholders and modern agriculture, and enhance the land production function in order to stabilize agricultural production and realize agricultural modernization.

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