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Article
Publication date: 8 May 2018

Linxiu Zhang, Yongqing Dong, Chengfang Liu and Yunli Bai

The purpose of this paper is to evaluate the trend of off-farm employment in rural China over the past four decades since the reform and opening-up.

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Abstract

Purpose

The purpose of this paper is to evaluate the trend of off-farm employment in rural China over the past four decades since the reform and opening-up.

Design/methodology/approach

Using two sets of panel survey data, the China National Rural Survey conducted in 2000 and 2008, and the China Rural Development Survey conducted in 2005, 2008, 2012 and 2016, this study offers a re-visit of China’s off-farm employment to give us the latest information about its evolution and whether rural labor markets have developed in a way that will allow them to facilitate the transformation of China’s economy more effectively. The evolution of off-farm employment is further examined through decomposition of types, destinations, industries, and population sub-groups as well as the change in the wage rate.

Findings

The data show the rapid increase in rural labor activities over the whole study period. Most notably, the authors findnd that a rapid rise in off-farm employment has continued even until after 2008 and into the mid-2010s, which is a time when some feared that macroeconomic conditions might keep rural residents on the farm or drive them back to the farm. In the disaggregation of labor market trends, the authors show that labor markets are acting consistently with an economy that is in transition from being dominated by agriculture to being dominated by other forms of production and with a population that is consistently becoming more urban.

Originality/value

The authors believe that the results will contribute positively to the exploration of answers to the question whether or not rural labor markets have developed in a way that will allow them to facilitate the transformation of China’s economy more effectively over the last four decades.

Details

China Agricultural Economic Review, vol. 10 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 30 October 2019

Li Li, Atsushi Tsunekawa, Ian MacLachlan, Guicai Li, Atsushi Koike and Yuanyuan Guo

The purpose of this paper is to examine the factors (including conservation payments) that influence household decisions to participate in off-farm work and estimate the impact of…

Abstract

Purpose

The purpose of this paper is to examine the factors (including conservation payments) that influence household decisions to participate in off-farm work and estimate the impact of participation on household welfare under the auspices of the Grain for Green (GfG) program.

Design/methodology/approach

The authors used survey data from 225 farm households on the Loess Plateau and addressed the possible sample selection and endogeneity problems by employing a jointly estimated endogenous switching regression (ESR) model.

Findings

The findings of this paper are as follows: off-farm participation is positively related to households’ educational attainment and negatively related to their land resource endowment and the presence of children; participation in off-farm work exerts positive effects on household income and per capita household income, but negative effects on farm productivity; and conservation payments show no significant impact on off-farm participation, no significant impact on any of the three household welfare indicators for off-farm non-participant households, but a significantly negative impact for off-farm participant households.

Originality/value

This paper makes two contributions. First, the authors address the selection bias and endogeneity problem of GfG participating households by employing the ESR method and explicitly estimating the treatment effects of off-farm participation on their household welfare. Neglecting these problems leads to biased estimates and misleading policy implications. Second, this analysis stresses the important role of government in reducing market or institutional failure and other barriers that impede farmers’ efficient allocation choices instead of compensating households for conserving sloping land, shedding new light on the most effective policy options to achieve the program’s goals.

Details

China Agricultural Economic Review, vol. 12 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 November 2020

Shaoze Jin, Jikun Huang and Hermann Waibel

In rural areas, geographic location is key to market access and labor mobility of farm households. This paper aims to investigate the opportunities and constraints of smallholder…

Abstract

Purpose

In rural areas, geographic location is key to market access and labor mobility of farm households. This paper aims to investigate the opportunities and constraints of smallholder rubber farmers in southwest China to adjust to the changes in economic and institutional conditions, namely the declining rubber prices, emerging land rental markets and growing off-farm job opportunities.

Design/methodology/approach

The empirical basis is a dataset of some 600 rubber farmers in Xishuangbanna Dai Autonomous Prefecture, Yunnan Province, collected in March 2015. The study uses instrumental variable and recursive bivariate probit models to account for possible endogeneity and selection bias.

Findings

With rubber prices in decline, the elevation of rubber plantations is an essential factor for the costs of access to the local factor markets and influences farm households' possibilities to adopt coping strategies. Notably, we find a U-shape type of relationship between the location and renting-out land due to the decline in rubber profitability. Rubber producers in low elevations are better bestowed with access to local markets. Households in high elevations, where rubber planting came in later, can shift to new crops like tea. However, the economic resilience of farmers in middle elevations is low due to their higher adjustment costs.

Originality/value

The paper provides a constructive basis for designing more location-specific development policies and can help avoid the past often ineffective blanket measures. Its implications have significant relevance for areas with similar conditions, for example, the remote, ethnic minority–dominated and mountainous rural areas in China.

Details

China Agricultural Economic Review, vol. 13 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Book part
Publication date: 23 November 2020

Tekalign Gutu Sakketa and Nicolas Gerber

Within the framework of potential efforts and strategies to employment generation for young people in Africa in general and Ethiopia in particular, the agricultural sector is…

Abstract

Within the framework of potential efforts and strategies to employment generation for young people in Africa in general and Ethiopia in particular, the agricultural sector is increasingly considered as an important sector and a valuable means for poverty reduction, the promotion of economic development, and youth's economic independence. Renewed hope is placed on the sector to offer sustainable livelihood prospects for the rural youth. Yet, the success and sustainability of the sector require a proper understanding of how households allocate youth labor time in the sector and whether agricultural labor supply is responsive to economic incentives such as shadow wages. Using gender- and age-specific plot-level panel data, we systematically analyze the impacts of shadow wages of each household member on youth agricultural labor supply across types of farms. The results indicate that agricultural shadow wages matter for the youth's labor supply in the sector, but the impact differs for male and female youth. We also show that trends and patterns of youth labor supply vary across gender and whether they work on their own farm, and so do their labor returns. The results are consistent after controlling for individual heterogeneity and instrumenting for possible endogeneity. Taking into account the intensity of youth's actual involvement in the family farm, own farm or off-farm work instead of their stated intentions, the results challenge the presumption that youth are abandoning agriculture, at least in agricultural potential areas of Ethiopia. Instead, the frequent narrative of youth disengaging from agriculture may be a result of methodological flaws or data limitations. The findings suggest that it is necessary to invest in agricultural development to enhance labor productivity and employability of young people in agriculture.

Details

Change at Home, in the Labor Market, and On the Job
Type: Book
ISBN: 978-1-83909-933-5

Keywords

Article
Publication date: 6 November 2017

Zheng Shen, Marie Parker, Derek Brown and Xiangming Fang

Since the implementation of the New Cooperative Medical Scheme (NCMS) in 2003, this program has experienced rapid growth. Even so, little is known about the association between…

Abstract

Purpose

Since the implementation of the New Cooperative Medical Scheme (NCMS) in 2003, this program has experienced rapid growth. Even so, little is known about the association between NCMS expansion and labor force supply among rural residents in China. The purpose of this paper is to examine the effects of the NCMS on labor force supply for rural Chinese populations.

Design/methodology/approach

Using data from the China Health and Nutrition Survey (CHNS), a difference-in-differences (DD) approach is employed to estimate the impact of NCMS expansion on labor supply outcomes, including hours of worked in agriculture, off-farm labor force participation, not working, and weeks off due to illness. A number of falsification tests are conducted to identify whether the assumption of common trends of DD analyses is satisfied. The robustness of results is checked through additional estimation, including panel fixed effects and instrumental variable approach.

Findings

Results show that the NCMS expansion has a positive effect on the hours of worked in agriculture and off-farm labor force participation, and reduces the likelihood of not working and weeks off due to illness. The effect on hours of agricultural production is larger for male adults, those aged 50 or more, and individuals in low-income families. This study demonstrates the importance of potential health improvements from public health insurance in promoting rural residents’ labor productivity.

Originality/value

Studies concerning the effects of public health insurance on labor supply in developing countries remain limited. The findings of this study provide important insights into how public health insurance programs, like the NCMS, may affect patterns of labor supply among rural residents, and can help policymakers improve health policies aimed to reduce the number of uninsured farmers while maintaining high levels of labor supply, productivity, and health status among the most vulnerable of populations.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Book part
Publication date: 12 January 2016

Ayuba Seidu and Gulcan Onel

We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local and…

Abstract

Purpose

We analyze the food security implications of off-farm labor reallocation decisions of rural farm households in transitional Albania. We accomplish this by examining local and nonlocal off-farm incomes for at-home food consumption expenditures.

Methodology/approach

An instrumental variable approach is employed to correct for endogeneity and censorship biases of off-farm income variables in a two-stage estimation of the food consumption expenditures.

Findings

We find that local off-farm income exerts a positive and significant effect on per capita food consumption expenditures of farm households, while private remittances from nonlocal off-farm income has the opposite effect on food consumption expenditures. In terms of regional heterogeneity, we discover that the mountain region spends significantly less on annual per capita food consumption compared to the central region. This confirms anecdotal evidence that food and nutrition insecurity in rural Albania is predominant in the mountain region.

Social implications

Our findings suggest the need for policy makers to promote a development agenda that enables farm households to exploit the synergies among the various income-generating activities in the rural economy. This spectrum of income-generating activities forms complex livelihood strategies adopted by rural farm households to improve and maintain their food security.

Originality/value

We distinguish between local and nonlocal sources of off-farm income. Knowing which off-farm income source(s) has the largest impact on household welfare through improved food security status should be of interest to policy makers.

Details

Food Security in a Food Abundant World
Type: Book
ISBN: 978-1-78560-215-3

Keywords

Article
Publication date: 5 May 2015

Weiliang Su, Chengfang Liu, Linxiu Zhang, Renfu Luo and Hongmei YI

– The purpose of this paper is to examine the impact of off-farm employment on agricultural fixed assets among households in rural China.

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Abstract

Purpose

The purpose of this paper is to examine the impact of off-farm employment on agricultural fixed assets among households in rural China.

Design/methodology/approach

The authors drew on panel data from two rounds of household-level surveys of more than 2,000 households in rural China. The two surveys were conducted in 2008 and 2012 in five provinces. The authors used instrumental-variable Tobit model to test whether the current value of agricultural fixed assets differ between households with different levels off-farm employment.

Findings

The authors observe that off-farm employment has a negative effect on the current value of agricultural fixed assets at the household level in rural China.

Originality/value

The authors believe that the results will contribute positively to the assessment of the effect of off-farm employment on the investment in agricultural fixed assets at the household level in the context of China.

Details

China Agricultural Economic Review, vol. 7 no. 2
Type: Research Article
ISSN: 1756-137X

Book part
Publication date: 19 December 2012

Hild Marte Bjørnsen and Ashok K. Mishra

The objective of this study is to investigate the simultaneity between farm couples’ decisions on labor allocation and production efficiency. Using an unbalanced panel data set of…

Abstract

The objective of this study is to investigate the simultaneity between farm couples’ decisions on labor allocation and production efficiency. Using an unbalanced panel data set of Norwegian farm households (1989–2008), we estimate off-farm labor supply of married farm couples and farm efficiency in a three-equation system of jointly determined endogenous variables. We address the issue of latent heterogeneity between households. We solve the problem by two-stage OLS and GLS estimation where state dependence is accounted for in the reduced form equations. We compare the results against simpler model specifications where we suppress censoring of off-farm labor hours and endogeneity of regressors, respectively. In the reduced form specification, a considerably large number of parameters are statistically significant. Davidson–McKinnon test of exogeneity confirms that both operator and spouse's off-farm labor supply should be treated as endogenous in estimating farming efficiency. The parameter estimates seem robust across model specifications. Off-farm labor supply of farm operators and spouses is jointly determined. Off-farm work by farm operator and spouses positively affects farming efficiency. Farming efficiency increases with operator's age, farm size, agricultural subsidises, and share of current investment to total farm capital stock.

Details

Essays in Honor of Jerry Hausman
Type: Book
ISBN: 978-1-78190-308-7

Keywords

Article
Publication date: 5 November 2018

Karin Wu, Hung-Hao Chang and Lih-Chyun Sun

The purpose of this paper is to investigate the effects of disaster relief payments on on-farm and off-farm labor supply of farm households in Taiwan. The effectiveness of the…

Abstract

Purpose

The purpose of this paper is to investigate the effects of disaster relief payments on on-farm and off-farm labor supply of farm households in Taiwan. The effectiveness of the policy amendments of the disaster relief assistance programs is also examined.

Design/methodology/approach

A unique sample of 124,827 persons living in the family farm household in 2009, 2011, 2012, 2013 and 2014 was used. This sample was merged into the township-level administrative profile of all of the recipients of agricultural disaster relief payments from the Natural Disaster Program in Taiwan. A fixed effect panel data model was estimated to analyze the impacts of disaster relief payments on each individual’s labor supply decision.

Findings

Natural disaster payments significantly reduced individual’s propensity to work on the farm. Moreover, the higher of the payments, the higher(lower) possibility of the individual to engage in on-farm(off-farm) work. In addition, an increase in the amount of disaster payments can increase the on-farm labor supply of family farm members.

Research limitations/implications

Due to data unavailability, an individual-level panel data set is not used. Future studies can check the robustness of the finding using an individual-level panel data set.

Originality/value

This paper contributes to the limited empirical evidence on agricultural relief programs.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 5 September 2016

Jason Loughrey and Thia Hennessy

The purpose of this paper is to identify the potential relationship between farm income variability and off-farm employment decisions in the short and medium term for the case of…

Abstract

Purpose

The purpose of this paper is to identify the potential relationship between farm income variability and off-farm employment decisions in the short and medium term for the case of Irish farm operators.

Design/methodology/approach

Panel probit models of off-farm labour supply are estimated using Teagasc National Farm Survey data for Irish farms. The framework is based largely on standard expected utility but includes a constraint for recent employment history.

Findings

The analyses identifies some evidence of a positive association between farm income variability and off-farm employment in the medium term but no significant relationship in the short term. This suggests that off-farm employment is part of a wider portfolio decision but is not a strong solution to short-term farm income shocks.

Practical implications

European farmers increasingly face high income variability but financial risk management tools are not sufficiently developed or widely accessible to assist farmers in managing the associated risk. This deficiency can have negative implications for household economic welfare and future farm investments and hence the future farm income. Off-farm employment can form part of a wider medium-term portfolio strategy but more effective tools are also required for risk management particularly in dealing with short-term volatility and where off-farm employment is not a realistic endeavour given time constraints and/or demographics.

Originality/value

The estimation of farm income variability includes a detrending method thus reducing the likelihood of overestimating farm income variability for farms in deliberate expansion or decline. While previous research has typically focused on the short-term response of farmers to historical farm income variability, this research has distinguished between the short and medium term.

Details

Agricultural Finance Review, vol. 76 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

1 – 10 of 512