Abstract: This paper mainly studies the impact of the existing land institution on the land structure and social welfare. Through the analysis of the change of construction land structure and the comparison between China and other countries, we found that the proportion of residential land in urban construction land is too low, the proportion of industrial land is too high. The paper further discusses the causes of the current land structure by constructing a two sector model. The main conclusions of the study are as following:(1) After the establishment of the monopoly land institution, the allocation of land resources tilt to the industrial sector:the land factor inputs of real estate sector decreased, the land factor inputs of industrial sector increased. Under the monopoly land institution, the social welfare level has declined, and the higher the degree of monopoly, the greater the welfare loss.

Key words: monopoly land institution, land structure, welfare loss