How land fragmentation affects off-farm labor supply in China: Evidence from household panel data

Lili Jia and Martin Petrick

No 126263, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: This study provides a deeper theoretical understanding of the linkages between land fragmentation and off-farm labor supply and investigates this relationship empirically in a more direct and robust way than in the existing literature. Drawing upon a rural household panel dataset collected in Zhejiang, Hubei and Yunnan provinces from 1995-2002, we estimate the effects in two steps. First, we estimate the effect of land fragmentation on labor productivity. Second, we estimate the effect of land fragmentation on off-farm labor supply. The production function results show that land fragmentation indeed leads to lower agricultural labor productivity, implying land consolidation will make on-farm work more attractive and thus decrease off-farm labor supply. However, the effect of land consolidation on off-farm labor supply cannot be observed in the presence of imperfect labor market and this conclusion is supported by a direct estimation of the effect of land fragmentation on off-farm labor supply.

Keywords: Labor and Human Capital; Land Economics/Use (search for similar items in EconPapers)
Pages: 25
Date: 2012
New Economics Papers: this item is included in nep-agr, nep-eff, nep-lab and nep-tra
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https://ageconsearch.umn.edu/record/126263/files/J ... nuscript_260612_.pdf (application/pdf)

Related works:
Working Paper: How land fragmentation affects off-farm labor supply in China: Evidence from household panel data (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126263

DOI: 10.22004/ag.econ.126263

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