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The Effect of Pension Income on Land Transfers: Evidence from Rural China

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Listed:
  • Jiong Zhu
  • Songqing Jin
  • Zhong Tang
  • Titus Awokuse

Abstract

In this study, we use an exogenous income variation generated from the Chinese New Rural Pension Scheme (NRPS) to examine the causal effects of pension income receipt on rural households’ land transfers. The regression discontinuity design (RDD) results show that pension income receipt would increase the probability of a senior household to rent out land by about 8–14 percentage points. In contrast, the NRPS program has no significant effect on households’ decision to rent in land. Various robustness checks support these findings. This study contributes to the limited literature on the evaluation of pension programs in developing and transition countries by investigating an outcome that is largely ignored but of increasing importance.

Suggested Citation

  • Jiong Zhu & Songqing Jin & Zhong Tang & Titus Awokuse, 2022. "The Effect of Pension Income on Land Transfers: Evidence from Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 71(1), pages 333-371.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/714081
    DOI: 10.1086/714081
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    Cited by:

    1. Chaozhu Li & Xiaoliang Li & Jiaxu Wang & Tianchu Feng, 2023. "Impacts of Aging Agricultural Labor Force on Land Transfer: An Empirical Analysis Based on the China Family Panel Studies," Land, MDPI, vol. 12(2), pages 1-15, January.
    2. Jinghua Sun & Peng Cheng & Zhaoxu Liu, 2023. "Social Security, Intergenerational Care, and Cultivated Land Renting Out Behavior of Elderly Farmers: Findings from the China Health and Retirement Longitudinal Survey," Land, MDPI, vol. 12(2), pages 1-22, January.

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