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Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China

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  • Emi Uchida
  • Scott Rozelle
  • Jintao Xu

Abstract

This study evaluates the labor response of rural households participating in the Grain-for-Green program in China, the largest payments for ecosystem services program in the developing world. Using a panel data set that we designed and implemented, we find that the participating households are increasingly shifting their labor endowment from on-farm work to the off-farm labor market. However, the effects vary depending on the initial level of human and physical capital. The results support the view that one reason why the participants are more likely to find off-farm employment is because the program is relaxing households' liquidity constraints. Copyright 2009, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2008.01184.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 91 (2009)
Issue (Month): 1 ()
Pages: 70-86

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Handle: RePEc:oup:ajagec:v:91:y:2009:i:1:p:70-86

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Cited by:
  1. Sylvie Démurger & Haiyuan Wan, 2012. "Payments for ecological restoration and rural labor migration in China: The Sloping Land Conversion Program in Ningxia," Post-Print halshs-00763147, HAL.
  2. Sylvie Démurger & Haiyuan Wan, 2012. "Payments for Ecological Restoration and Internal Migration in China : The Sloping Land Conversion Program in Ningxia," Working Papers halshs-00761163, HAL.
  3. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, vol. 39(1), pages 123-133, January.
  4. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  5. Kelly, Peter & Huo, Xuexi, 2013. "Land Retirement and Nonfarm Labor Market Participation: An Analysis of China’s Sloping Land Conversion Program," World Development, Elsevier, vol. 48(C), pages 156-169.
  6. Jia, Lili & Petrick, Martin, 2011. "How land fragmentation affects off-farm labor supply in China: Evidence from household panel data," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114522, German Association of Agricultural Economists (GEWISOLA).
  7. Liu, Hongmei & Huang, Qiuqiong, 2013. "Adoption and continued use of contour cultivation in the highlands of southwest China," Ecological Economics, Elsevier, vol. 91(C), pages 28-37.
  8. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 66, number 66.
  9. Ben Groom & Charles Palmer, 2012. "Relaxing Constraints as a Conservation Policy," Working Papers 2012.63, Fondazione Eni Enrico Mattei.
  10. Yanez-Pagans, Patricia, 2013. "Cash for Cooperation? Payments for Ecosystem Services and Common Property Management in Mexico," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151295, Agricultural and Applied Economics Association.
  11. Alix-Garcia, Jennifer M. & Shapiro, Elizabeth N. & Sims, Katharine R. E., 2010. "Forest Conservation and Slippage: Evidence from Mexico's National Payments for Ecosystem Services Program," Staff Paper Series 548, University of Wisconsin, Agricultural and Applied Economics.

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