The Impact of Forestry Management Participation on Rural Household Income and Inequality: Evidence from Guizhou Province, China

With the transformation of the rural economy and the increasing national emphasis on forest resources, forestry management plays an increasingly important role in promoting household income growth and sustainable rural development. This study, based on a field survey of 1043 micro-level household data collected in Guizhou Province, China, empirically analyzes the impact of participation in forestry management on household income, income structure, and income inequality, as well as its underlying mechanisms. Using endogenous switching models, quantile regression models, and mediation effect models, the study reveals the following findings: First, participation in forestry management significantly enhances household income. Second, the impact of participation in forestry management on income structure varies, significantly increasing both forestry and non-forestry income, with the effect on forestry income being particularly pronounced. Third, participation in forestry management significantly alleviates income inequality, especially for low-income households. Fourth, forestry management indirectly increases household income and non-forestry income by promoting forest-based employment. Forest-based employment acts as a partial mediator in the effect of forestry management on household income and a full mediator in the increase in non-forestry income. The contribution of this study lies in its multidimensional approach to revealing the comprehensive impact of participation in forestry management on rural household income, providing important policy insights for increasing household income and achieving sustainable rural development.