The Impact Of Agricultural Subsidies On Farmers’ Income From The Perspective Of Income Inequality

To promote common prosperity,the most arduous and arduous task still lies in the rural areas.In 2020,China won the battle against poverty in an all-round way,creating a "Chinese miracle" in the history of world poverty reduction,with rapid growth in farmers’ income,but the two major problems of weakening income growth momentum and widening income gap within rural areas have become increasingly prominent.To achieve common prosperity,we must solve the problem of peasants’ income.As an important expenditure policy in China’s fiscal support policy,agricultural subsidies are a regular subsidy measure implemented by the state for agricultural production to achieve agricultural development,which is of positive significance for promoting agricultural development,increasing farmers’ income,and narrowing the income gap.Therefore,the research objectives of this paper are: based on the background of the era of common prosperity,focusing on income disparity,comprehensively examining the impact of agricultural subsidies on farmers’ income,qualitatively analyzing the relationship between agricultural subsidies and farmers’ income,and quantitatively analyzing the impact of agricultural subsidies on farmers’ income and income gap,in order to further release the multiple benefits of agricultural subsidies to increase low-income farmers’ income,stimulate farmers’ income growth momentum,and limit the widening of income gap within rural areas.Firstly,this paper systematically sorts out the relevant literature on agricultural subsidies and farmers’ income,analyzes the influence mechanism of agricultural subsidies on farmers’ income,puts forward corresponding hypotheses,uses the data of China Household Financial Survey(CHFS)and uses quantile regression model to explore the impact of agricultural subsidies on the income of farmers at different income levels,and discusses the impact of agricultural subsidies on the income gap between farmers through the coefficient difference test.In order to verify the robustness of the model regression results,this paper uses the variable substitution method to solve the measurement bias of the two indicators of farmer household income and agricultural subsidies,uses full-quantile regression to comprehensively test the robustness of agricultural subsidies at all sites,and uses the municipal agricultural subsidy level as an instrumental variable to solve the estimation bias caused by the mutual causal problem in the model,and finds that the model conclusions are robust and reliable.In order to further study the impact of agricultural subsidies on farmers’ income,this paper divides farmers into pure farmers,agricultural part-time households,non-agricultural part-time households,and non-agricultural households according to the degree of part-timeization,and examines the heterogeneous impact of agricultural subsidies on farmers’ income and income gap under different degrees of part-timeization.The results of this paper are as follows:(1)Agricultural subsidies have a significant role in promoting the income of farmers,but their impact on the income of farmers at different income levels is different,and the degree of influence gradually decreases from the low to the high decile with the distribution of farmers’ income level conditions,and the promotion effect on farmers with the lowest income level is the strongest.(2)Agricultural subsidies can reduce the income gap between farmers at different income levels.(3)Agricultural subsidies have a stimulating effect on the income of farmers with different degrees of part-time business,but there are differences in the promotion effect,generally speaking,pure farmers> agricultural part-time households> non-agricultural part-time households and non-agricultural households.Under the same degree of part-time,agricultural subsidies also have different promotion effects on farmers with different income levels,and for pure farmers,agricultural part-time households and non-agricultural part-time households,agricultural subsidies have the greatest effect on increasing the income of farmers with the lowest income level.(4)Agricultural subsidies can alleviate the income gap between pure farmers,agricultural part-time households and non-agricultural part-time households,but the alleviating effect on the internal income gap of non-agricultural households is limited.In order to continuously release the effect of agricultural subsidies "raising down and expanding the middle",narrow the income gap between rural households,and solidly promote the common prosperity of rural areas,this paper puts forward the following countermeasures and suggestions: First,continue to strengthen agricultural subsidies and improve rural supporting policies.Second,implement differentiated agricultural subsidies to favor low-and middle-income farmers.Third,encourage farmers to work part-time,and at the same time beware of income disparities brought about by part-time farming.Fourth,implement precision agricultural subsidies and improve the efficiency of the use of agricultural subsidy funds.