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Rural households'decisions towards income diversification: Evidence from a township in northern China

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  • Sylvie Démurger

    ()
    (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

  • Martin Fournier

    ()
    (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

  • Yang Weiyong

    (University of International Business and Economics - University of International Business and Economics)

Abstract

Economic 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 in a Northern China township. 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. We find that land availability stimulates on-farm diversification. Local off-farm activities are mostly driven by households' assets position and working resources, while migration decisions strongly depend on the household size and composition. 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. We find a clear gender and age bias in access to off-farm activities that are mostly undertaken by male and by young people. The households' assets position as well as village networks are found to strongly affect participation in off-farm activities.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00550457.

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Date of creation: 2010
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Publication status: Published, China Economic Review, 2010, 21, S1, S32-S44
Handle: RePEc:hal:journl:halshs-00550457

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Keywords: income-source diversification; agricultural households; off-farm employment; China;

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References

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  1. Sylvie Démurger & Marc Gurgand & Shi Li & Yue Ximing, 2008. "Migrants as second-class workers in urban China? A decomposition analysis," Post-Print halshs-00269119, HAL.
  2. Alan de Brauw & Scott Rozelle, 2006. "Reconciling the Returns to Education in Off-FarmWage Employment in Rural China," Department of Economics Working Papers 2006-03, Department of Economics, Williams College.
  3. Alan de Brauw & John Giles, 2005. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," Department of Economics Working Papers 2005-05, Department of Economics, Williams College.
  4. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution Of China'S Rural Labor Markets During The Reforms," Working Papers 11984, University of California, Davis, Department of Agricultural and Resource Economics.
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Cited by:
  1. Chavez, M.D. & Berentsen, P.B.M. & Oude Lansink, A.G.J.M., 2014. "Analyzing diversification possibilities on specialized tobacco farms in Argentina using a bio-economic farm model," Agricultural Systems, Elsevier, vol. 128(C), pages 35-43.
  2. Katsushi S. Imai & Jing You, 2013. "Poverty Dynamics of Households in Rural China," Discussion Paper Series DP2013-16, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2013.

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