In the context of China’s rural transition from a “migrant worker economy” to an “entrepreneurial economy” in rural areas，this study utilizes data from the Chinese Family Panel Studies （CFPS） spanning from 2012 to 2020 to examine the impact of the returnee entrepreneurship pilot policy on the labor productivity of rural households from a micro-household perspective.The results reveal that the pilot policy significantly enhances farmers’ labor productivity，a conclusion that still holds after a series of robustness tests.Disaggregated analysis reveals that the pilot policy significantly improves farmers’non-agricultural labor productivity by promoting non-agricultural employment，while their effect on agricultural labor productivity remains statistically insignificant.This is attributed to the pilot policy simultaneously having a positive effect on agricultural labor productivity through promoting land transfers and a negative effect by reducing human capital invested in farming，resulting in a net offset of effects.Heterogeneity analysis indicates that the policy has a stronger positive effect on labor productivity in central and western regions than in eastern regions.Moreover， the policy’s promotion of non-agricultural labor productivity is more significant for low-income farmers than for high-income farmers.Based on these findings，the study recommends expanding and refining the pilot policy，increasing support for entrepreneurial activities in central and western regions，and expanding the poverty-reducing measures within the pilot policy.