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Rural Land Circulation and Peasant Household Income Growth—Empirical Research Based on Structural Decomposition

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  • Wenwu Zhang

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Shunji Zhao

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Jinguo Wang

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Xinyao Xia

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Hongkui Jin

    (School of Economics and Management, Nanjing University of Finance and Economics, Nanjing 210023, China)

Abstract

How rural land transfer affects the growth of non-agricultural income and the changes in its sources are important research topics. This study uses the micro-data from the China Family Panel Studies (CFPS) spanning from 2014 to 2020 and empirically analyzes the impact of rural land transfer on the growth of non-agricultural income, based on a multi-dimensional decomposition of rural household income structure. This study found that (1) land transfer has a significant promoting effect on the growth of non-agricultural income. Transferring out land is conducive to increasing wage income and transfer income, while transferring in land compensates for the decrease in operating income by achieving a higher operating income, ultimately leading to an increase in total income. (2) The effect of land transfer on the growth of non-agricultural income is higher in the Eastern region than in the Central and Western regions. The higher the education level of family members, the greater the income-increasing effect of land transfer on farmers. (3) Mechanism analysis shows that land transfer increases farmers’ opportunities for migrant work and improves farmers’ operational efficiency, which are the main channels for the growth in non-agricultural income. This study demonstrates that land circulation will promote farmers’ income growth and prosperity through rental income, share cooperation and dividends, labor transfer and wage income, industrial chain extension and value-added income, and policy support and subsidies.

Suggested Citation

  • Wenwu Zhang & Shunji Zhao & Jinguo Wang & Xinyao Xia & Hongkui Jin, 2024. "Rural Land Circulation and Peasant Household Income Growth—Empirical Research Based on Structural Decomposition," Sustainability, MDPI, vol. 16(16), pages 1-24, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:6717-:d:1450772
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    References listed on IDEAS

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    1. Tzu-Ling Huang & Peter F. Orazem & Darin Wohlgemuth, 2002. "Rural Population Growth, 1950–1990: The Roles of Human Capital, Industry Structure, and Government Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 615-627.
    2. Ben Dachis & Gilles Duranton & Matthew A. Turner, 2012. "The effects of land transfer taxes on real estate markets: evidence from a natural experiment in Toronto," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 327-354, March.
    3. Holden, Stein & Shiferaw, Bekele & Pender, John, 2004. "Non-farm income, household welfare, and sustainable land management in a less-favoured area in the Ethiopian highlands," Food Policy, Elsevier, vol. 29(4), pages 369-392, August.
    4. Fan, Xin & Qiu, Sainan & Sun, Yukun, 2020. "Land finance dependence and urban land marketization in China: The perspective of strategic choice of local governments on land transfer," Land Use Policy, Elsevier, vol. 99(C).
    5. Xia, Fangzhou & Huang, Jing & Zhang, Zhengfeng, 2024. "Government concerns, the benefit cliff, and land use: A comparative study of rural impoverished and marginalised impoverished groups," Land Use Policy, Elsevier, vol. 140(C).
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    Cited by:

    1. Benjian Wu & Yiyuan Rong & Xinyu Liang & Haibo Zhu & Xue Shi, 2024. "Can Land Transfer Alleviate Multidimensional Relative Poverty in Rural Areas?," Land, MDPI, vol. 13(11), pages 1-24, October.
    2. Zhan Zhang & Guanyi Yin & Qing Wang & Qingzhi Sun & Guanghao Li & Shenghao Zhu & Liangfei Gao, 2025. "The Impact Mechanism of Land Scale on Farmers’ Participation in New Agricultural Business Entities," Sustainability, MDPI, vol. 17(9), pages 1-22, May.
    3. Yuting Xu & Yitian Lin & Hong Yang & Guoliang Xu & Chao Cheng, 2025. "The Influence of Rural Land Transfer on Rural Households’ Income: A Case Study in Anhui Province, China," Land, MDPI, vol. 14(2), pages 1-21, January.
    4. Qinghao Wang & Chentao Zhang & Mingyue Gong & Beiqi Zhu, 2024. "Village Organization and Sustainable Growth of Farmers’ Income: An Empirical Study Based on Dynamic Survey Data of the Labor Force in China," Sustainability, MDPI, vol. 16(21), pages 1-25, October.
    5. Jie Wang & Zhijian Cai & Zhen Zeng & Chang Liu, 2025. "How Do Digital Skills Affect Rural Households’ Incomes in China? An Explanation Derived from Factor Allocation," Sustainability, MDPI, vol. 17(20), pages 1-18, October.

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