Rural households decisions towards income diversification : Evidence from a township in northern China
AbstractEconomic reforms in rural China have brought opportunities to diversify both within-farm activities and off-farm activities. Participation in these activities plays an important role in increasing rural households' income. This paper analyzes the factors that drive rural households and individuals in their income-source diversification choices for ten villages in Northern China. At the household level, we distinguish three types of diversification as opposed to grain production only : within farm (non- grain production) activities, local off-farm activities, and migration. At the individual level, we analyze the determinants of participation in three different types of jobs as compared to agricultural work : local off-farm employment, local self-employment and migration. At the household level, we find that land and labor availability stimulates on-farm diversification. Local off-farm activities are mostly driven by household wealth and credit constraints, while migration decisions strongly depend on the household age and composition. At the individual level, we find a clear gender and age bias in access to off-farm activities that are mostly undertaken by male and by young people. More surprisingly, education is found to play a role for accessing local wage employment but not in migration decision. As at the household level, the household assets position is found to strongly affect participation in any off-farm activity.
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Date of creation: 2009
Date of revision:
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income-source diversification; agricultural households; off-farm employment; China;
Other versions of this item:
- Sylvie Démurger & Martin Fournier & Weiyong Yang, 2009. "Rural households decisions towards income diversification: Evidence from a township in northern China," Working Papers 0923, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Sylvie Démurger & Martin Fournier & Yang Weiyong, 2010. "Rural households'decisions towards income diversification: Evidence from a township in northern China," Post-Print halshs-00550457, HAL.
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
- Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-11 (All new papers)
- NEP-DEV-2009-12-11 (Development)
- NEP-TRA-2009-12-11 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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