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The impact of land expropriation on income gap among farm households. Evidence from China

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  • Wang, Yu
  • Xing, Jialong

Abstract

Land expropriation is one of the manifestations of rapid urbanization in developing countries. This paper uses data from China Family Panel Studies (CFPS) to investigate the impact of land expropriation on the income gap of farm households in China. We find that land expropriation reduces income inequality among farm households in China, mainly through promoting entrepreneurship and non-farm employment. However, the impact is different among househoulds with different levels of human capital. In addition, the impact varies by regions and policy periods. These findings offer lessons for reducing income gap among farm households in countries undergoing rapid urbanization.

Suggested Citation

  • Wang, Yu & Xing, Jialong, 2025. "The impact of land expropriation on income gap among farm households. Evidence from China," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 151-171.
  • Handle: RePEc:eee:ecanpo:v:88:y:2025:i:c:p:151-171
    DOI: 10.1016/j.eap.2025.09.006
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