The impact of the three rights separation of rural homestead reform on farmers’ economic welfare: a county-level macro analysis

The three rights separation of rural homestead reform (TRSRH) is a key component of China’s ongoing innovation in rural land institutions. Its central aim is to optimize the bundle of rights associated with rural homesteads through the “separation of three rights,” thereby improving the efficiency of land resource allocation and enhancing farmers’ welfare. Using panel data for 2,545 counties from 2000 to 2022, this study employs a staggered difference-in-differences model to systematically evaluate the impact of the reform pilots on farmers’ economic well-being. The results show that the reform significantly increases rural residents’ per capita disposable income, suggesting its positive role in expanding property-based income, facilitating factor mobility, and strengthening institutional guarantees. Further analysis indicates that the reform’s effect is more pronounced in regions with higher levels of economic development, more active population mobility, or stronger locational advantages, and that low-income and low-welfare groups benefit to a greater extent. Mechanism tests reveal that the expansion of non-farm employment opportunities and improvements in infrastructure and public service provision are important channels through which the reform enhances farmers’ welfare. These findings provide useful policy implications for refining the rural homestead system and advancing rural revitalization.