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The impact of the global financial crisis on off-farm employment and earnings in rural China

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  • Huang, Jikun
  • Zhi, Huayong
  • Huang, Zhurong
  • Rozelle, Scott
  • Giles, John

Abstract

This paper examines the effect of the financial crisis on off-farm employment of China's rural labor force. Using a national representative data set collected from across China, the paper finds that there was a substantial impact. By April 2009 the reduction in off-farm employment as a result of the crises was 6.8 percent of the rural labor force. Monthly earnings also declined. However, while it is estimated that 49 million were laid-off between October 2008 and April 2009, half of them were re-hired in off-farm work by April 2009. By August 2009, less than 2 percent of the rural labor force was unemployed due to the crisis. The robust recovery appears to have helped avoid instability.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5439.

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Date of creation: 01 Oct 2010
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Handle: RePEc:wbk:wbrwps:5439

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Keywords: Labor Markets; Labor Policies; Work&Working Conditions; Tertiary Education; Crops&Crop Management Systems;

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  1. de Brauw, Alan & Giles, John, 2008. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6085, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2003. "Economic Shocks, Wealth, and Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
  3. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
  4. Peter R. Fallon & Robert E. B. Lucas, 2000. "The Impact of Financial Crises on Labor Markets, Household Incomes and Poverty: A Review of Evidence," Boston University - Institute for Economic Development 103, Boston University, Institute for Economic Development.
  5. de Brauw, Alan & Giles, John, 2008. "Migrant opportunity and the educational attainment of youth in rural China," Policy Research Working Paper Series 4526, The World Bank.
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