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Abstract

The expropriation of farmland in China by local governments and the compensations paid to farmers are a major source of social conflicts. Using rural household survey data collected among 450 households in three provinces, this paper examines the impacts of compensation payments and different compensation modes on farmers’ satisfaction with the land compensation. The major findings are: (1) farmers’ satisfaction with the compensation depends not only on the size of the compensation but also on the gap between the compensation and the market value of the expropriated land; (2) the compensation amount positively affects farmers’ satisfaction when the social security compensation mode is used, but does not significantly affect farmers’ satisfaction when other modes are used. We conclude by discussing the policy relevance of our findings.

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