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Off-farm employment and grain production change: New evidence from China

Jin Yang, Qian Wan and Wu Bi

China Economic Review, 2020, vol. 63, issue C

Abstract: How does off-farm employment affect grain production? Previous research findings are inconsistent. This paper provides a general theoretical framework to explain the effect of off-farm employment on grain production and consider that the effect is non-liner. The empirical results show that off-farm employment decreases grain production and insignificantly changes grain crop structure. Importantly, we find an inverted-U correlation between off-farm employment and grain production, meaning that off-farm employment will increase grain production when the off-farm labor supply is relatively low and will decrease grain production when the off-farm labor supply is relatively high. Further, we investigate the heterogeneity of the causal effect in the destinations of off-farm employment, household's land scale, land features, household location, and household aging.

Keywords: Off-farm employment; Grain production; Grain-crop structure (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:63:y:2020:i:c:s1043951x20301164

DOI: 10.1016/j.chieco.2020.101519

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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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