The Impact of Entrepreneurship on the Income Mobility of Farmers' Families

Abstract

This paper is based on Chinese Health and Nutrition Survey data, using transition matrix to estimate the relative income mobility of different farmers’ families. As the results show: Entrepreneurship has a significant impact on the income mobility of farmers' families. In general, the income mobility of entry-entrepreneurship farmers' families is on the rise; the income mobility of keep-entrepreneurship farmers' families is low, but the mobility quality is the best; the income mobility of exit-entrepreneurship farmers' families is higher, but the mobility quality is the worst, while the income mobility of non-entrepreneurship farmers' families is higher, but the quality is poor. Therefore, farmers choose to start a business will improve their income mobility, and keep in entrepreneurship is conducive to improve their income and help to maintain their dominant position of income. Encourage farmers to be entrepreneurs in the new age, that is helpful to provide a fair competition environment for farmers, to improve farmers’ internal flow structure, and to promote fairness and justice.