Income growth of peasants with enterprise entering using DID model-based on 260 samples of farmers in Jinzhong City, China

Abstract

In anticipation of building a moderately prosperous society in 2020 and doubling the income of urban and rural residents, through field investigation on 260 microscopic farmers from 16 villages in Jinzhong City of China, this paper built Difference-in-Difference Model and made comparative analysis for the income growth of farmers overall, different income channels and landless farmers before and after agricultural enterprises entering. The results show that: firstly, the entering of agricultural enterprises made the peasants income improve 28184 Yuan and the income increased sustainability; secondly, three income channels have significant positive effect and the role of radiation channel is strongest; thirdly, during the observation period, the entering of enterprise made more contribution to landless farmers than un-landless farmers. The income growths of landless farmers mainly come from the non-farm business. Finally, the article put forward corresponding policy recommendations to solve land disputes, income disparity and unbalance on land price with the entering of enterprise.