Farmland Transfer and Income Distribution Effect of Heterogeneous Farmers with Livelihood Capital: Evidence from CFPS

Xueqi Wang, Zhongguo Xu, Guan Li, Yuefei Zhuo and Wei Zou ()
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Xueqi Wang: Law School, Ningbo University, Ningbo 315211, China
Zhongguo Xu: Law School, Ningbo University, Ningbo 315211, China
Guan Li: Law School, Ningbo University, Ningbo 315211, China
Yuefei Zhuo: Law School, Ningbo University, Ningbo 315211, China
Wei Zou: College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China

Land, 2023, vol. 12, issue 7, 1-20

Abstract: Farmland transfer is a crucial aspect of modernizing China’s agriculture, which has a significant impact on farmers’ income distribution. With rapid urbanization, farmers’ livelihood has changed significantly, and the income effects of farmland transfer will differ among heterogeneous farmers. Based on the China Family Panel Studies (CFPS) data, this study examines the impact of farmland transfer on farmers’ income growth and income disparity, as well as the income differences in farmland transfer among farmers with different types of livelihood capital. An endogenous switching regression model and unconditional quantile treatment effects are used to correct the selection bias and farmer heterogeneity. The results show that (1) farmland transfer increases farmers’ income. Specifically, farmland transfer-in increases farmers’ income by 21.15%, while transfer-out increases it by 43.33%. (2) The impact of farmland transfer on farmers’ income has a “Matthew effect” and will widen the income gap between farmers. (3) Moreover, farmland transfer exhibits diverse income effects on heterogeneous farmers with livelihood capital. Capital-rich farmers experience the largest income-growth effect from farmland transfer-in, while capital-balanced farmers experience the largest income-growth effect from farmland transfer-out. The policy implications are to further improve the farmland transfer market and enable low-income farmers to participate by improving their qualifications and abilities.

Keywords: farmland transfer; heterogeneous farmers with livelihood capital; income growth; income gap; endogenous switching regression; unconditional quantile treatment effects (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:12:y:2023:i:7:p:1398-:d:1192436

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