Analysis of the effect of social capital on rural household poverty

Focusing on rural household poverty in China, this article takes social capital as an entry point and uses the 2018 CFPS database to study the effects and mechanisms of social capital on absolute income, relative income, absolute poverty, and relative poverty of rural households. The results find that social capital can significantly increase the income of rural households and reduce the probability of poverty; also, the householder's education has a certain substitution effect on social capital, which can significantly weaken the income increasing effect of social capital; social capital has a more significant role in increasing the income of poor families and helps to narrow the income gap; social capital can promote income diversification, however, income diversification shows a negative impact on household income and poverty; poverty acceptance has a significant mediating effect in the process of social capital's influence on household poverty, and social capital can further promote household income increase and poverty reduction by suppressing poverty acceptance. In this regard, the government can strengthen rural infrastructure construction, inclination of educational resources and labour skills training, and promote positive rural culture, to increase the social capital of rural households, help them increase their income, achieve poverty alleviation, and prevent them from returning to poverty again.