The Effect of Land Reallocation on Off-Farm Employments in Rural China

Yi Che; Zuojun Fan; Yan Zhang

doi:10.3868/s060–008–019–0018–3

Front. Econ. China ›› 2019, Vol. 14 ›› Issue (3) : 401 -427. DOI: 10.3868/s060–008–019–0018–3

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The Effect of Land Reallocation on Off-Farm Employments in Rural China

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Abstract

Could land reallocation partially explain the decision of off-farm employment of farmers in rural China? Using an individual-level survey data, we find that there is no effect of land reallocation on the individuals’ decision on off-farm employments. However, there is a robust negative effect of land reallocation on the amount of time that villagers devote to off-farm work. The first result is attributed to the large earnings difference between farm and nonfarm work; the second result is attributed to the fact that village leaders reallocate land from households short of farm labor to households that farm intensively.

Keywords

land reallocation / off-farm work / two-stage framework / rural China / efficiency

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Yi Che, Zuojun Fan, Yan Zhang. The Effect of Land Reallocation on Off-Farm Employments in Rural China. Front. Econ. China, 2019, 14(3): 401-427 DOI:10.3868/s060–008–019–0018–3