Land Transfer and Rural Household Consumption Diversity: Promoting or Inhibiting?

Land resources are important for millions of rural households in China. With the land tenure system reform and trend nonfarm employment, transfer affects household income consumption diversity significantly. Utilizing data from China Family Panel Studies (CFPS) 2018, this study investigated effects on Chinese households’ diversity, measured by Simpson index. In order to mitigate endogeneity problems caused reverse causality selection bias between farmers’ decisions behavior, we employed propensity score matching (PSM) method instrumental variable (IV) method. Besides, Shannon index was also used measure robustness test. The results showed that who have transferred others’ would decrease their while out increase diversity. Heterogeneity analysis had different degrees impact with groups more significant low-income households. Specifically, compared higher-income households, both promotion effect inhibitory were obvious lower-income