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Scientia Silvae Sinicae ›› 2023, Vol. 59 ›› Issue (4): 139-148.doi: 10.11707/j.1001-7488.LYKX20220296

• Research papers • Previous Articles     Next Articles

Impact of the Expiration of the First Round Subsidies for the Sloping Land Conversion Program on the Income Inequality among Farmer Households

Jingyi Zhang,Chen Chen,Liqun Wang*   

  1. School of Economics & Management, Beijing Forestry University Beijing 100083
  • Received:2022-05-06 Online:2023-04-25 Published:2023-07-05
  • Contact: Liqun Wang

Abstract:

Objective: This study aims to explore the impact of the expiration of the first round subsidies for the sloping land conversion program (SLCP) on the income inequality among farmer households, which would provide decision-making reference for improving the follow-up SLCP policy and promoting common prosperity. Method: Based on the field survey data of 1 733 farmer households in five Provinces (autonomous region) of Hebei, Sichuan, Gansu, Ningxia and Hunan in 2019 and 2021, with the re-centralization impact function (RIF) regression model, this paper empirically tested the impact of the expiration of the subsidies for the SLCP on the inequality of internal income and income structure of farmer households, and further investigated the heterogeneous impact of the expiration of the subsidies for the SLCP on the internal income inequality of farmer households at different levels of education and the conversion scale. Result: 1) The estimated result of the expiration of the subsidies for the SLCP on the income inequality among farmer households was significantly positive at the level of 5%. 2) Different metrics were selected to replace Gini coefficient, and the RIF model constructed by the different metrics passed the robustness test, indicating that the research results were reliable. 3) From the perspective of income structure, the estimated results of the expiration of the subsidies for the SLCP on the inequality from farmer households’ internal wage income and production income were significantly positive respectively at the level of 10%, the estimated results of farmer households’ internal transfer income was significantly negative at the level of 10%, and that of farmer households’ internal property income was not significant. 4) For farmer households at different levels of education, after the expiration of the subsidies for the SLCP, the estimated results of internal income inequality of farmer households at and below primary school and below junior high school were significantly positive at the level of 5% and 10%, respectively, while the estimated results of internal income inequality of farmer households at and above high school were significantly negative at the level of 10%. For farmer households with different scale of the SLCP, the estimated result of the internal income inequality from farmer households with medium scale and above of the SLCP was significantly positive at the level of 10%, but the estimated result of the internal income inequality from farmer households with small-scale of the SLCP was not significant. Conclusion: The expiration of the first round of subsidies for the SLCP widens the income inequality among farmer households to a certain extent. The expiration of subsidies for the SLCP expands the inequality of farmer households’ internal wage income and production income respectively, but reduces the inequality of farmer households’ internal transfer income. There exist great different impacts of the expiration of subsidies for the SLCP on income inequality among the types of farmer households. The expiration of subsidies for the SLCP aggravates the income inequality among the farmer households with middle and low education background and with medium and above scale of the SLCP, but alleviates the income inequality among farmer households with high education background, and has no significant impact on income inequality of farmer households with small scale of the SLCP. Based on the above, this paper puts forward corresponding suggestions from the aspects of broadening farmers’ employment channels, promoting the development of subsequent related industries and carrying out targeted policy assistance.

Key words: sloping land conversion program, subsidy policy, income inequality, re-centralization influence function regression, farmer households

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