Impact of housing conditions on resident willingness to withdraw from rural homesteads and preferences regarding compensation and resettlement mode: A dual-sample selection model

Abstract

The withdrawal from rural homesteads has significant implications for improving village environments and land resource utilization. However, previous research has neglected the multilevel nature of resident behavioral decision-making and the critical role of rural housing. To bridge this gap, this study defines resident willingness at three comprehensive levels: “willingness to relocate—preference for compensation or resettlement—preference for resettlement site.” We develop a theoretical framework based on the traits of rural residents as both “economic actors” and “social actors.” Combining 272,111 household survey data from ongoing rural house improvement work in northern Jiangsu, a dual-sample selection model is used to examine the impact of original housing conditions on resident willingness to relocate and preferences regarding compensation and resettlement mode. The results show that the condition of the original housing is a pivotal determinant of resident willingness to withdraw from their homesteads. Economically, it influences how residents evaluate the relative costs and benefits associated with alternative options. Socially, it affects residents’ emotional attachment to various alternatives. These two dimensions jointly shape resident decision-making preferences. Generally, when the original housing is in a poor construction condition or a low utilization condition, residents are more likely to relocate. Additionally, there is a pronounced tendency toward monetary compensation or village resettlement. We also find that rural homestead withdrawal and cultivated land transfer have strong synergistic effects. The study emphasizes the importance of establishing fair and comprehensive relocation compensation and resettlement mechanisms, creating a robust resident protection system, and ensuring long-term effective and integrated policy implementation.