The impact of cropland transfer on rural household income in China: The moderating effects of education

Abstract

Cropland transfer as one of the mainstream measures has been implemented for over two decades in China to enhance land productivity and resource use efficiency. Despite the widely demonstrated benefits of cropland transfer on household income, the role of education in improving household income through cropland transfer remains unclear. This study investigates the impacts of cropland transfer on household income and further explores the moderating effects of education on these effects by using panel data from the China Family Panel Studies (CFPS) with a two-way fixed effect model. We show that cropland transfer has increased rural household income. Cropland transfer-in increases both on-farm and off-farm income for households, while cropland transfer-out reduces on-farm income and increases off-farm income for households. Education moderates the effects of cropland transfer on rural household income. In the case of cropland transfer-in, education positively moderates the impact on household income, particularly enhancing on-farm income. In comparison, households with better-education demonstrate a negative contribution to increasing off-farm and total income through cropland transfer-out. The moderating effects of education on the contribution of cropland transfer to improve household income has a tipping point. This study offers decision makers valuable insights for improving household income and facilitating rural revitalization in China.