Abstract: Promoting the transfer of rural labor force to the nearby location can effectively alleviate the negative impact on rural areas on the basis of guaranteeing the employment of migrant workers and promoting economic development. In order to clarify the impact mechanism of land transfer on the nearby migration of rural labor, based on the data of China Household Tracking Survey (CFPS) in 2016, 2018 and 2020, Tobit model, propensity score matching method (PSM), intermediary effect and moderating effect model were used to explore the impact mechanism of land transfer on the nearby migration of rural labor. The results show that land transfer can significantly promote the migration of rural labor to the nearest location, and the results remain reliable after data tailing reduction, replacement variables, robustness test of screened samples and elimination of endogenous bias caused by self-selection. Peasant household entrepreneurship plays a part of intermediary effect in the process of land circulation affecting the nearby migration of rural labor force, and plays a role of “entrepreneurship drives employment” . The human favor expenditure of rural households has a significant positive adjustment effect on the effect path of land circulation on the nearby transfer of rural labor. Therefore, we should improve the rural land transfer system, encourage and support farmers to innovate and start businesses nearby, positively guide rural social relations network and improve the construction of rural formal market.