A study of the impact of land transfer decisions on household income in rural China

Abstract

As an important measure to enhance the allocation of land resources and achieve moderate scale operation in China, land transfer has an irreplaceable role in giving full play to the social and economic value of land. This paper uses data from the China Family Panel Studies in 2018 and applies OLS, PSM and mediator effects to study the impact of land transfer on household income. The results of the study show that: firstly, participation in land transfer can significantly increase the income level of farming households, but the impact of different land transfer acts on household income varies. Secondly, the age and physical condition of the household head, the number of agricultural and non-agricultural members in the household and the poverty status of the household all have a negative effect on household income. On the other hand, the education level of the household head, the household size and the presence of village officials in the household, agricultural subsidies, land titling and land size all have a positive effect on household income. Thirdly, the impact on household income for households that did not participate in land transfer is greater than for those that did. The results of the mediator effect test show that land transfer has a significant effect on household farm income, and that farm income has a full mediator effect, but all have a positive significant effect on household income.