The Determinants of Labour-time Allocation between Farm and Off-farm Work in Rural China: the Case of Liaoning Province

Qingjie Xia and Colin Simmons

Journal of Chinese Economic and Business Studies, 2004, vol. 2, issue 2, 169-184

Abstract: This article examines the determinants of the allocation process of labour time between farm and off-farm activities (OFAs) in north-east rural China during the late 1990s. The question is addressed by means of a dedicated fieldwork survey of 450 rural households in a clustering of nine villages in Xinmin County located in Liaoning Province. The econometric methodology consists of deploying a multinomial logit model to track the distribution of OFA employment opportunities. Our results reveal that market forces, rather than overt political connections, are assuming increasing significance, especially for those operating own-account enterprises (OAEs); that birthplace and location remain potent determinants of work destination and earnings capacity; and that being male and single motivates rural inhabitants to seek OFAs to a much greater extent than other household members. These findings have implications for those responsible for framing policy. In particular, a further round of liberalization to favour OFAs is suggested.

Keywords: China; employment diversification; off-farm activities; own-account enterprises (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/14765280410001684814

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