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Land rental markets and labor productivity: Evidence from rural China

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  • Jian Zhang
  • Ashok K. Mishra
  • Peixin Zhu

Abstract

This study investigates the impact of the land rental market on labor productivity in rural China. Particular attention is given to farm and nonfarm labor productivity. Using 2012 household‐level data and a multinomial endogenous switching treatment regression technique, we find that rural households renting in farmland increased labor productivity in the farm sector by about 55%, whereas labor productivity in the nonfarm sector decreased by about 6%. We also find that rural households renting out farmland had lower labor productivity in both the farm and nonfarm sectors by 13% and 9%, respectively. More family labor transferred from the farm to the nonfarm sector after renting out land. Cette étude examine l'impact du marché locatif foncier (MLF) sur la productivité du travail dans les régions rurales de la Chine. Une attention particulière est accordée à la productivité du travail agricole ainsi que du travail non agricole. En utilisant les données au niveau des ménages de 2012 et une technique de régression multinomiale par traitement de commutation endogène (MESTR), nous constatons que les ménages ruraux qui louent des terres agricoles ont augmenté la productivité du travail dans le secteur agricole d'environ 55%, tandis que la productivité du travail dans le secteur non agricole a diminué d'environ 6%. Nous constatons également que les ménages ruraux louant leurs terres agricoles avaient une productivité du travail inférieure dans les secteurs agricole et non agricole de 13% et 9%, respectivement. Plus de main‐d'œuvre familiale a transféré de la ferme au secteur non agricole après la mise en location des terres.

Suggested Citation

  • Jian Zhang & Ashok K. Mishra & Peixin Zhu, 2021. "Land rental markets and labor productivity: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 93-115, March.
  • Handle: RePEc:bla:canjag:v:69:y:2021:i:1:p:93-115
    DOI: 10.1111/cjag.12247
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