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The Effect of Land Reallocation on Off-Farm Employments in Rural China

Yi Che (), Zuojun Fan () and Yan Zhang ()
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Zuojun Fan: China-ASEAN Research Institute, Guangxi University, Nanning 530004, China
Yan Zhang: School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China

Frontiers of Economics in China, 2019, vol. 14, issue 3, 401-427

Abstract: 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.

Keywords: land reallocation; off-farm work; two-stage framework; rural China; efficiency (search for similar items in EconPapers)
JEL-codes: Q15 R13 (search for similar items in EconPapers)
Date: 2019
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