Non-Farm Income and Income Inequality: An Empirical Study Based on the Income Distribution of Farmers in Liaoning and Jilin Provinces

Abstract

Non-farm activities play a more and more important role in the household income of rural areas. Whether the non-agricultural activities can help to reduce the income inequality? Research and measurement of 816 samples of farmer income in Liaoning, Jilin Province based on the distribution of non-agricultural income in rural areas to find out the family income, according to the inspection to explore, to promote rural non-agricultural income contribution income inequality. Considering the substitution relationship between agricultural income and non-agricultural income, the non-agricultural income is taken as an alternative income of agricultural income, and is involved in the decision-making of farmers. The results show that compared with the rich families, nonfarm income can increase the income level of the poor families, so as to reduce the degree of income inequality in rural areas. Improving the rural infrastructure, strengthening vocational and technical education, strengthening the skills training, and improving the level of public services, to improve the ability of poor farmers to participate in non-agricultural activities has an important role. At the same time, it is also helpful to improve the contribution of non-agricultural activities in the economic development of poor rural areas.