Does Land Transfer Improve Farmers’ Quality of Life? Evidence from Rural China

Abstract

The topic of quality of life has long been a focus of global research and the public. The land transfer policy implemented by the Chinese government affects farmers’ quality of life (FQOL); however, the extent of this effect remains unclear. As land transfer may be a self-selection behaviour, it may be subject to selection bias such that traditional measurement methods are unable to effectively estimate its quantitative impact. This study used data from a questionnaire given to 5668 rural households in 25 provinces of mainland China. It sought to quantify the impact of land transfer on FQOL by using endogenous switching regression (ESR) models to correct selection bias. The results show: (1) for farmers who choose to transfer land, if they choose not to transfer land, FQOL may decrease by 64.11%; (2) for farmers who choose not to transfer their land, if they go on to choose to transfer their land, FQOL may increase by 0.75%; (3) land transfer can improve the quality of life of the older generation of farmers but will reduce the quality of life of the newer generation. The results of this study provide research support for China and other countries seeking to effectively implement land policies and improve the FQOL, helping to provide practical strategies for the sustainable development of rural areas.