Agricultural land transfer and wage inequality in the presence of modern agriculture

Xiaochun Li and Bince Zhao

Asia-Pacific Journal of Accounting & Economics, 2025, vol. 32, issue 6, 1259-1278

Abstract: By constructing a three-sector general equilibrium model encompassing modern agriculture, this study shows that how agricultural land transfer impacts wage inequality. In the short run, it narrows the urban skilled-unskilled wage inequality but widens the urban-rural unskilled wage inequality and the average skilled-unskilled wage inequality. In the long run, it widens (narrows) the urban skilled-unskilled wage inequality if the skilled labor employment effect is large (small) enough, but narrows (widens) the urban-rural unskilled wage inequality and the average skilled-unskilled wage inequality if the unskilled labor employment effect is large (small) enough.

Date: 2025
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DOI: 10.1080/16081625.2024.2425843

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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