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A Counterfactual Analysis on Unlimited Surplus Labor in Rural China

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  • Fang Cai
  • Meiyan Wang
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    Abstract

    Using a counterfactual analysis approach, the present paper examines a host of conventional wisdoms relating to issues of farmer, the countryside and agriculture, which are believed to be all originated from the existence of mass surplus laborers in China. When analyzing various sources of statistics, evidence shows that there is no longer a large pool of surplus laborers in rural China as most people believe. Based on this counterfactual result, all related events, such as the direction of agricultural technological changes, the level of comparative productivity of agricultural labor, and the degree of rural-urban income gap must be reconsidered. Copyright (c) 2008 The Authors.Journal compilation (c) 2008 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

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    Bibliographic Info

    Article provided by Institute of World Economics and Politics, Chinese Academy of Social Sciences in its journal China & World Economy.

    Volume (Year): 16 (2008)
    Issue (Month): 1 ()
    Pages: 51-65

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    Handle: RePEc:bla:chinae:v:16:y:2008:i:1:p:51-65

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    Cited by:
    1. Muto, Ichiro & Fukumoto, Tomoyuki, 2011. "Rebalancing China’s economic growth: some insights from Japan’s experience," MPRA Paper 32570, University Library of Munich, Germany.
    2. Dorrucci, Ettore & Pula, Gabor & Santabárbara, Daniel, 2013. "China's economic growth and rebalancing," Occasional Paper Series 142, European Central Bank.
    3. Huanxiu GUO & Sébastien Marchand, 2013. "Is participatory social learning a performance driver for Chinese smallholder farmers?," Working Papers halshs-00878886, HAL.
    4. Mary-Françoise Renard & Huanxiu GUO, 2013. "Social activity and collective action for agricultural innovation: a case study of New Rural Reconstruction in China," Working Papers halshs-00802119, HAL.
    5. Cai, Fang & Wang, Meiyan, 2010. "Growth and structural changes in employment in transition China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 71-81, March.

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