Resources Science ›› 2021, Vol. 43 ›› Issue (7): 1479-1491.

### Effect of homestead withdrawal on family welfare:From the perspective of family risk taking capacity

WU Lijun1(), WU Zebin2()

1. 1. Institute of Land Science and Real Estate, Zhejiang University, Hangzhou 310058, China
2. School of Economics and Management, Jiangxi University of Science and Technology, Ganzhou 341000, China
• Received:2020-09-01 Revised:2020-11-19 Online:2021-07-25 Published:2021-08-27
• Contact: WU Zebin

Abstract:

The right to use homestead is a kind of usufruct privilege unique to China, with a strong welfare nature. Homestead withdrawal has an important impact on the overall welfare level of peasant families. From the perspective of household risk carrying capacity, the threshold effect of homestead withdrawal on household welfare level was discussed. Based on the sample data of 3450 households in China Family Panel Studies (CFPS) from 2014 to 2016, a threshold panel regression model was constructed to take household risk carrying capacity as the threshold variable for empirical test. The results show that: (1) A significant nonlinear relationship exists between homestead withdrawal and household welfare level, and the degree and direction of the impact of homestead withdrawal on household welfare level depend on the risk taking capacity of households. (2) Family risk taking capacity has a double threshold effect. The stronger the risk taking capacity of the family, the more the homestead withdrawal can promote the improvement of the household welfare level; when the risk taking capacity of the family is weak, the welfare level of the family decreases after the homestead is withdrawn. (3) Risk taking capacity of households, per capita GDP, the area of homestead, and the amount of compensation for the withdrawal of homestead all have a significant positive impact on the improvement of the household welfare level. Family risk bearing capacity is an important threshold variable that affects family welfare level in the process of homestead withdrawal. The government should take family risk bearing capacity as an important decision-making factor to promote the orderly withdrawal of rural homestead in China. The policy making should fully consider the differences of risk bearing capacity of different households and treat them differently.