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Rural pension, factor reallocation and agricultural productivity: Evidence from China

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  • Dai, Shouhan
  • Gong, Binlei
  • Hu, Peinan
  • Wei, Xiaoyun

Abstract

This study examines how pension schemes influence land reallocation and agricultural productivity. While previous research typically groups households based on the presence of elderly members, we distinguish between households where the elderly are operators and those where they are not. Our findings show that land is reallocated from elderly-operated to younger-operated households, leading to a 9.8 % increase in agricultural productivity. The rural pension scheme in China drives migration and land leasing out in elderly-operated households, while facilitating rent-in and scale expansion in younger households. These findings offer new insights into how pension schemes can enhance agricultural factor reallocation and productivity.

Suggested Citation

  • Dai, Shouhan & Gong, Binlei & Hu, Peinan & Wei, Xiaoyun, 2026. "Rural pension, factor reallocation and agricultural productivity: Evidence from China," Journal of Development Economics, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:deveco:v:179:y:2026:i:c:s0304387825002044
    DOI: 10.1016/j.jdeveco.2025.103653
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    Keywords

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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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