
The Effect of Land Reallocation on Off-Farm Employments in Rural China
Yi Che, Zuojun Fan, Yan Zhang
Front. Econ. China ›› 2019, Vol. 14 ›› Issue (3) : 401-427.
The Effect of Land Reallocation on Off-Farm Employments in Rural China
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.
land reallocation / off-farm work / two-stage framework / rural China / efficiency
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