Sustainable Rural Livelihoods and Equity: A Comparative Analysis of Land Transfer and Non-Farm Employment in Sichuan Province, China

While agricultural modernization improves productivity, it may worsen rural inequality. Without systematic guidance and institutional rules, it harms inclusive and sustainable rural development. To examine the income distribution effects of two distinct modernization pathways, this study uses an innovative dual-mode framework integrating resource endowment, mechanism, and distribution to compare Land Transfer and Non-farm Employment. Based on a survey of 963 farm households in modern agricultural parks of Sichuan Province, we apply regression, endogeneity correction, mechanism and heterogeneity analysis. The study found that Land Transfer exhibits a significant positive correlation with income growth through economies of scale and labor release effects, yet its benefits primarily flow to local elite groups with superior resource endowments, demonstrating an “elite capture” tendency; Non-farm Employment is closely linked to income growth by raising wage levels, enhancing skill levels, and improving employment stability. Its benefits are more likely to reach ordinary, low-income, and less-educated farmers, reflecting the characteristic of “inclusive growth.” The framework reveals divergent equity outcomes of efficiency-oriented reforms, providing new insights for building fair and sustainable agricultural systems. It also provides micro-level policy references for SDG 10 (reduced inequalities) and SDG 8 (decent work and economic growth).