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What Stayers Do? Capital Endowments and On-Farm Transitions in Rural China

Hao Wang, Jan Fidrmuc, Qi Luo and Mingzhong Luo

No 7306, CESifo Working Paper Series from CESifo Group Munich

Abstract: While much research on China has focused on rural to urban migration and transitions of rural households away from agriculture, little is known about the changes within the rural agricultural sector. Yet, the agricultural sector continues to account for a large share of employment. We study the determinants of transitions from subsistence farming into either formal agricultural employment or agricultural self-employment. We pay particular attention to the role of capital endowments. We find that financial capital plays a relatively limited role, compared to natural, human, social and political capital.

Keywords: on-farm transitions; rural household livelihood strategy; capital endowments; labor allocation (search for similar items in EconPapers)
JEL-codes: D13 O18 Q10 Q12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cna, nep-lab and nep-tra
Date: 2018
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