Effects of Agricultural Land Titling on Poverty Reduction in China

ABSTRACT Using administrative data on low‐income populations, this study provides quasi‐experimental evidence on the impact of agricultural land titling on poverty reduction in rural China. We show that the staggered rollout of the programme at the town level significantly reduces household poverty incidence by enhancing labour incentives, facilitating the reallocation of labour to non‐agricultural sectors and increasing labour market participation among people with disabilities. We provide a simple theoretical framework with empirically testable predictions to interpret our results. Further analysis reveals that agricultural land titling promotes land reallocation and supports income growth through different channels for agricultural and non‐agricultural households. Additional evidence suggests that the programme mitigates vulnerability and reduces the risk of long‐term poverty. These findings illustrate how institutional reforms in property rights empower labour incentives among vulnerable groups, providing valuable insights for other developing countries aiming to achieve sustainable and inclusive poverty reduction.