The Nexus Between Flush Toilet Use and Off‐Farm Performance of Rural Households

Junpeng Li, Xiao Liu, Xianghai Meng and Wenguang Zhang

Review of Development Economics, 2025, vol. 29, issue 3, 1792-1807

Abstract: This study examines the impact of flush toilet use on farmers' off‐farm performance. We analyse data from 2012, 2014 and 2016 China Labour‐force Dynamics Survey (CLDS) by employing the two‐stage residual inclusion (TSRI) model to address the endogeneity issues associated with flush toilet use. The results show that flush toilet use not only significantly increases the probability of farmers' participation in off‐farm work by 3.5% but also improves their off‐farm income by 2100 yuan/capita/year. Disaggregated analyses reveal that farmers characterised as female, well‐educated and aware of water pollution benefit the most from using flush toilets in terms of off‐farm work participation and off‐farm income. Our mediation analysis confirms that farmers' use of flush toilet enhances their health conditions, which links them to improved off‐farm performance. Our findings highlight a practical pathway to enhance farmers' economic welfare by demonstrating the significance of flush toilets in improving the performance of rural households' off‐farm.

Date: 2025
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