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ORIGINAL RESEARCH
Research on the Impact of Livelihood
Infrastructure on Income Inequality among
Farmhouseholds: A Quasi-Natural Experiment
from the Drinking Water Transformation
1
China Center for Special Economic Zone Research, Shenzhen University, Shenzhen
2
Shenzhen Audencia Financial Technology Institute, Shenzhen University, Shenzhen
3
School of Finance, Guangdong University of Finance & Economics, Guangzhou
4
College of Management, Shenzhen Polytechnic University, Shenzhen
5
School of Economics, Shenzhen Polytechnic University, Shenzhen
Submission date: 2024-03-12
Final revision date: 2024-04-25
Acceptance date: 2024-05-14
Online publication date: 2024-09-11
Publication date: 2025-01-28
Corresponding author
Pol. J. Environ. Stud. 2025;34(3):3077-3092
KEYWORDS
TOPICS
ABSTRACT
This study utilizes data from the China Family Panel Studies (CFPS), spanning five rounds of
surveys from 2010 to 2018, as a sample. Using the deprivation index to measure income inequality
among farmhouseholds, a quasi-natural experiment is established through a “progressive” differencein-
differences (DID) model to empirically examine the impact of livelihood infrastructure on income
inequality among farmhouseholds, specifically focusing on the transformation of drinking water.
The findings reveal that the transformation of drinking water, as a component of livelihood
infrastructure, significantly reduces income inequality among farmhouseholds. The robustness of the
research conclusions is validated through a series of tests, including the parallel trends test, the placebo
test, and the PSM-DID. Mechanism tests indicate that the transformation of drinking water primarily
reduces income inequality among farmhouseholds by enhancing their household health capital
and psychological capital. Furthermore, further analysis demonstrates an inverted U-shaped non-linear
relationship between the impact of drinking water transformation on income inequality and the per
capita net income of households. The impact of drinking water transformation on income inequality
is more pronounced among households with land ownership and households where the head engages
in farming activities.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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| eISSN: | 2083-5906 |
| ISSN: | 1230-1485 |
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