The Impact Of Social Capital And Health On Farmers’ Income

Since the reform and opening up,the rural economy and farmers’ income have lagged far behind the urban economy and urban residents’ income growth.Make the three rural issues become one of the focus of the party and the government,especially the income problem in the three rural issues.Subsequently,the Chinese government issued a series of Rural Poverty Alleviation Policies,which invested a lot of human,material and financial resources in the backward rural areas to develop the rural economy,improve the income of farmers,improve their living standards and achieve common prosperity.After the concept of social capital was put forward,it immediately attracted the attention of the academic circles.With the in-depth study,social capital is regarded as a new kind of capital which has an important impact on income.Scholars study social capital from macro and micro perspectives,in order to be widely used in economic development and social progress.In the process of research,scholars have noticed that social capital plays a very important role in the promotion of individual income.As a typical acquaintance relationship society with relatives and friends as the link,people obtain job information and employment opportunities by building various social networks in their lives,trying to reduce transaction costs.Based on the review of relevant theories and literatures,this paper attempts to analyze the influence mechanism of social capital on household income by taking health as an intermediary variable.Based on the micro survey data of CGSS in 2013,2015 and 2017,this paper uses the mediating effect model to analyze the impact of social capital on household income and its mechanism.The results show that: first,social capital has a significant positive impact on household income and health,and health has a partial mediating effect in the impact of social capital on household income.Second,social capital has a significant positive impact on the income of all age groups.Third,social capital has a significant positive impact on all income levels of farmers.In the robustness analysis,social capital and farmers’ income are endogenous.In view of this,farmers should maintain good social relations with relatives and friends,participate in the organization of economic cooperation organizations and maintain physical and mental health in daily life,so as to enhance their social capital and health and promote income growth.In addition,the government needs to improve the medical security mechanism in rural areas to reduce the probability of farmers returning to poverty due to illness.