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Temporary migration and land renting behavior

Le Wen, Krishna Paudel and Qinying He

Economic Analysis and Policy, 2023, vol. 78, issue C, 1372-1391

Abstract: This paper investigates the impact of temporary migration on land transfer (land renting) using a conceptual framework and empirical analysis based on nationally representative data from the 2017 China Migrants Dynamic Survey. Our key findings indicate that temporary migration significantly and negatively affects land transfer-out, after accounting for potential endogeneity issues using the PSM and 2SLS methods. Specifically, migrants with temporary intentions are at least 5.85 percentage points less likely to transfer-out land than their permanent counterparts. We also find that the adverse effect of temporary migration on land transfer is more pronounced in larger cities but diminishes over time as migrants stay longer. Furthermore, we observe that permanent immigrants are more likely to transfer land to acquaintances than strangers, whereas temporary immigrants are more likely to cultivate the land. Our results have significant policy implications for agricultural productivity and rural rental land market in China.

Keywords: Land transfer; Propensity score matching; Instrumental variable; Temporary migration; Migrant workers (search for similar items in EconPapers)
JEL-codes: D13 J61 Q13 Q15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:78:y:2023:i:c:p:1372-1391

DOI: 10.1016/j.eap.2023.05.009

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