Agricultural productivity fluctuations and structural transformation—Evidence from rural China

Heer Wang

Applied Economic Perspectives and Policy, 2025, vol. 47, issue 2, 801-822

Abstract: This study explores how short‐term agricultural productivity fluctuations affect labor supply of Chinese rural households under the background of frequent extreme weather events. It reveals that extreme rainfall‐induced declines in agricultural productivity lead to decreased agricultural employment and increased non‐agricultural employment and migration. Additionally, there is a shift in workdays away from agriculture toward sectors such as manufacturing, construction, and transportation. The study estimates that labor reallocation can alleviate 32.56% of income losses caused by these productivity fluctuations. Overall, these findings underscore the vital role of labor reallocation in mitigating the economic impact of short‐term agricultural productivity declines.

Date: 2025
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https://doi.org/10.1002/aepp.13494

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:47:y:2025:i:2:p:801-822

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