China & World Economy / 107–126, Vol. 27, No. 2, 2019

How Can Chinese Farmers’ Property Income Be Improved?
A Population–Land Coupling Urbanization Mechanism
Yuzhe Wu, Wendan Jiang, Jiaojiao Luo, Xiaoling Zhang, Martin Skitmore

Abstract

Balancing urban and rural development is an important political goal in China. The failure of rural land privatization has led to a low level of rural economic development and a vast property income gap between citizens and farmers. This paper illustrates the reasons for property income inequality from the perspective of the land tenure system and the dualistic household registration system. After evaluating the segmentation of the rural land market and the rigid nature of rural land assets, a population–land coupling urbanization mechanism is proposed. The paper argues that China’s land property system has externalized a high degree of geospatial and social urban and rural intertwinement. Major reform of the rural land property rights system is required to correct the situation (further development of the social security system and stable urbanization) and to increase property income potential for farmers.

Key words: household registration system, land ownership, land privatization, property income
JEL codes: H70, R52, Z18