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The Impact of the Global Financial Crisis on Off-farm Employment and Earnings in Rural China

Author

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

Abstract

Summary This paper examines the effect of the financial crisis on off-farm employment of China's rural labor force. Using a national representative dataset, we find that there was a large impact. By April 2009 off-farm employment reached 6.8% of the rural labor force. Monthly earnings also declined. However, while we estimate 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% of the rural labor force was unemployed due to the crisis. The robust recovery appears to have helped avoid instability.

Suggested Citation

  • Huang, Jikun & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott & Giles, John, 2011. "The Impact of the Global Financial Crisis on Off-farm Employment and Earnings in Rural China," World Development, Elsevier, vol. 39(5), pages 797-807, May.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:797-807
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    References listed on IDEAS

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    1. Elizabeth Frankenberg & James P. Smith & Duncan Thomas, 2003. "Economic Shocks, Wealth, and Welfare," Journal of Human Resources, University of Wisconsin Press, vol. 38(2).
    2. de Brauw, Alan & Giles, John, 2008. "Migrant labor markets and the welfare of rural households in the developing world : evidence from China," Policy Research Working Paper Series 4585, The World Bank.
    3. Peter R. Fallon & Robert E. B. Lucas, 2002. "The Impact of Financial Crises on Labor Markets, Household Incomes, and Poverty: A Review of Evidence," World Bank Research Observer, World Bank Group, vol. 17(1), pages 21-45.
    4. Alan de Brauw & John Giles, 2017. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 272-311.
    5. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
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    Citations

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    Cited by:

    1. Li, Chao & Gibson, John, 2013. "Rising Regional Inequality in China: Fact or Artifact?," World Development, Elsevier, vol. 47(C), pages 16-29.
    2. Haughton, Jonathan & Khandker, Shahidur R., 2014. "The Surprising Effects of the Great Recession: Losers and Winners in Thailand in 2008–09," World Development, Elsevier, vol. 56(C), pages 77-92.
    3. Amare, Mulubrhan & Waibel, Herman, 2014. "Climate Variability, Shocks and Non-farm Employment: Evidence from Rural Households in Northeast Thailand," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187571, German Association of Agricultural Economists (GEWISOLA).
    4. Fan Li & Yingquan Song & Hongmei Yi & Jianguo Wei & Linxiu Zhang & Yaojiang Shi & James Chu & Natalie Johnson & Prashant Loyalka & Scott Rozelle, 2017. "The impact of conditional cash transfers on the matriculation of junior high school students into rural China’s high schools," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(1), pages 41-60, January.
    5. Vikram Nehru, 2010. "East Asia and the Pacific Confronts the “New Normal”," World Bank Other Operational Studies 10170, The World Bank.
    6. John Gibson & Chao Li & Geua Boe-Gibson, 2014. "Economic Growth and Expansion of China’s Urban Land Area: Evidence from Administrative Data and Night Lights, 1993–2012," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-16, November.
    7. Wang, Xiaobing & Huang, Jikun & Zhang, Linxiu & Rozelle, Scott, 2011. "The rise of migration and the fall of self employment in rural China's labor market," China Economic Review, Elsevier, vol. 22(4), pages 573-584.
    8. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    9. repec:wsi:serxxx:v:62:y:2017:i:05:n:s0217590815500745 is not listed on IDEAS
    10. repec:spr:soinre:v:132:y:2017:i:1:d:10.1007_s11205-015-1223-z is not listed on IDEAS
    11. Jikun Huang & Jun Zhang & Scott Rozelle, 2013. "The Political Economy of Food Pricing Policy in China," Working Papers id:5317, eSocialSciences.
    12. Zhang, Hongliang & Behrman, Jere R. & Fan, C. Simon & Wei, Xiangdong & Zhang, Junsen, 2014. "Does parental absence reduce cognitive achievements? Evidence from rural China," Journal of Development Economics, Elsevier, vol. 111(C), pages 181-195.

    More about this item

    Keywords

    global financial crisis off-farm employment earning rural China Asia;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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