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Off-farm employments and land rental behavior: evidence from rural China

Yi Che ()

China Agricultural Economic Review, 2016, vol. 8, issue 1, 37-54

Abstract: Purpose - – The purpose of this paper is to examine the impacts of off-farm labor employments on household land rental behavior in rural China. Design/methodology/approach - – IV-Probit and IV-Tobit model are used to identify the estimate of interest. Findings - – The results indicate that households with more members participating in either migration or local off-farm work are more/less likely to rent out/in land. Moreover, the effect of migration on household land rental behavior is much larger than the effect of local off-farm work. Practical implications - – These results suggest that ensuring benefits of migrants in urban cities can automatically promote household land rental behavior in rural China. Originality/value - – The authors provide a rigorous and careful empirical analysis on the effect of off-farm employment on household land rental behavior and pay special attention to the endogeneity issue tackled using separable instruments.

Keywords: Migration; Rural household behaviour; Agricultural markets; Local off-farm work; Household land rental behaviour (search for similar items in EconPapers)
Date: 2016
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