Land Rental Markets, Specialization, and Rural Household Income: Evidence from the North China Plain

Using panel data for the years 2013, 2015, and 2017 collected through field surveys in eight counties in the North China Plain, we examine the relationship between smallholders’ land rental behavior and their (agricultural) incomes, with a particular focus on heterogeneous specialization among smallholders. We find that farming-specialized households experience a significant higher increase in agricultural income and a larger decrease in poverty incidence by renting in land than nonspecialized households. Off-farm specialized households had a decreased likelihood of being poor by renting out land, whereas nonspecialized households experienced no decrease in poverty incidence after renting out land.