Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/156391 
Year of Publication: 
2009
Citation: 
[Journal:] China Economic Review [ISSN:] 1043-951X [Volume:] 20 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2009 [Pages:] 360-371
Publisher: 
Elsevier, Amsterdam
Abstract: 
The goal of this study is to assess the dynamics of rural households' labor market participation in the wake of China's efforts to develop rural labor markets in a manner that is conducive to its transition to a market economy. Based on a theoretical model that emphasizes the impact of duration, i.e. of the number of years households spent part-time farming or full-time farming, respectively, we investigate the shifts between these two states. We also identify socioeconomic factors that determine these shifts. The empirical study is based on discrete time hazard approaches, using micro-level panel data from Zhejiang, Hubei, and Yunnan provinces from 1995 to 2002. Estimation results suggest relatively high chances of shifts from full-time to part-time farming and a considerable lower risk for the shift in the opposite direction. Significant negative duration dependence is found for the move from full-time to part-time farming suggesting lock-in effects. In addition, we find that labor market participation decisions are significantly related to several household, farm and village characteristics. In particular, the likelihood of shifts from full-time farming to part-time farming is positively related to the educational level of households' workforce.
Subjects: 
Farm household
Labor market participation
Full-time farming
Off-farm employment
Hazard analysis
Dynamics
JEL: 
C41
J22
J24
J43
J62
Q12
Published Version’s DOI: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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