Farmland Transfer Mode and Livelihood Capital Endowment Impacts on Income Inequality: Rural Survey Data of Hubei Province, China

Abstract

Studying the impact of different farmland transfer modes on farmers’ income inequality can help understand the reasons for the income gap between farmers. Based on this, we use field survey data and OLS regression, quantile idea and Shapley decomposition to analyse the impact of farmland transfer on farmers’ income inequality. The results show that the influence of farmers’ spontaneous mode on the increase in farmers’ income is better than that of the market-led mode and government-led mode. The market-led and government-led transfer modes also significantly enhance the positive impact of livelihood capital on farmers’ income. The higher the level of natural, material, labour and social capital of farmers, the more favourable the effect on income, while the financial capital is more beneficial to high-income farmers. As for the restraining effect of the transfer modes on the income gap, the farmers’ spontaneous mode is the best, the government-led mode is the second, and the market-led mode is the worst. Further research shows that the transfer mode greatly impacts the income inequality of middle-income and low-income farmers. There are significant differences in the effects of livelihood capital on farmers’ income inequality in different transfer modes. Therefore, on the premise of following farmers’ willingness, the government should play a leading role in further standardizing the farmland transfer market and improving the household income of low-income and middle-income farmers.