Abstract

With the continued development of the economy, the income gap among Chinese rural households continues to widen. The land system plays a decisive role in developing “agriculture, rural areas and farmers” and land circulation is a factor in the increase in income inequality among farm households. Based on the 2013 China Household Income Project (CHIP), this article used the re-centered influence function (RIF) regression method to empirically test the impact of rural land circulation on the income gap of rural households in China in three regions: the central, eastern and western regions. The quantile regression tested the impact mechanism of income inequality of rural households from the perspective of labor mobility and land circulation. The empirical results showed that land circulation increases the income inequality of rural households. The theoretical mechanism test proved that the dynamic relationship between land circulation and labor mobility increases rural household income. However, this increase has a greater effect on rural households with a high income and a small effect on rural households with a low income, resulting in a further widening of the income gap. Therefore, while increasing the income of rural households through land circulation, the government should also consider income equity. Finally, this article puts forward the policies and opinions on land reform and provides a brief discussion on the future direction of development.

Highlights

  • Received: 27 June 2021Accepted: 22 July 2021Published: 25 July 2021Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.Licensee MDPI, Basel, Switzerland.Since the founding of New China, Chinese farmers have experienced changes in farmland, agricultural management and farmland property rights systems

  • The remainder of this paper is arranged as follows: Section 2 introduces the instiThe remainder of this paper is arranged as follows: Section 2 introduces the institututional background of land circulation and summarizes relevant literature; Section 3 tional background of land circulation and summarizes relevant literature; Section 3 disdiscusses the impact mechanism of land circulation on the income inequality of rural cusses the impact mechanism of land circulation on the income inequality of rural househouseholds; Section 4 uses the data from the 2013 China Household Income Project (CHIP)

  • The per capita annual disposable income of rural households was used as the explained variable, and land circulation was used as the explanatory variable

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Summary

Introduction

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. These data came from the “China Yearbook of Household Survey” from 2005–2019. China continues to explore reform of thesystem, rural system, the transformation. China continues to explore a reforma of the rural but thebut transformation of the rural has taken long exceed people’s expectations. Inequality in rural areas restricts economic development, the welfare by increased incomes,incomes, and affects stability. The household contract responsibility systemsystem was implemented ture, and farmers” It has greatly increased the mented at the beginning of the founding of New China.

The scale scale of of land land circulation circulation in in China from1984
Institutional Background
Literature Review
Income Effect of the Land Circulation
Income Distribution Effect of the Land Circulation
Theoretical Mechanism
Model Construction
Data Source
Variables
Benchmark Regression Results
Robustness Test
Analysis of the Influence Mechanisms
Conclusions and Recommendations
Full Text
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