Can grain subsidies impede rural–urban migration in hinterland China? Evidence from field surveys
In this paper I examine if China's grain subsidy program keeps farmers from engaging in migratory work using self-collected panel rural household survey data from Zhijiang, Hubei province. Making use of Zhijiang's unique geographical features, I construct a treatment and a control group and use a difference-in-differences methodology to identify the subsidy effect on migration. My results suggest that the grain subsidy policy does keep farmers at the rural origin.
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