IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The influence of agricultural policies on agriculture structure adjustment in Taiwan: An analysis of off-farm labor movement

  • Tsai-Yu Chang
Registered author(s):

    Purpose – The purpose of this paper is to focus on labor movement in the agricultural sector of Taiwan to clarify the relationship between agricultural policy and the agricultural adjustment problem by estimating the labor movement function. Design/methodology/approach – The relationship between agricultural policy and the adjustment process of agricultural labor in Taiwan was analyzed by modeling labor movement between the agricultural sector and other sectors. Through empirical analysis of labor migration function, it is clear that the following policy factors, affect the incentive for labor migration, and obstruct off-farm labor migration: the price support policy; the incomplete farmland conversion regulations, which increase farmers' farmland possession motive; and government agricultural expenditure, which includes direct transfers to the agricultural sector. Findings – The study confirms that after the late 1980s the factors that obstruct agricultural adjustment much more than the price support policy are the incomplete farmland conversion regulations and increasing government agricultural payments, from the result of the simulation with the influence of the policy eliminated. Research limitations/implications – The implication of this paper is that even though Taiwan has been participating in World Trade Organization from 2002 and consented to cut the tariff on agricultural products and reduce agriculture support policies not linked to production, a delay in labor adjustment between the agricultural sector and other sectors may not necessarily be eliminated if there are other policy factors that affect the incentive for off-farm migration by farmers. Originality/value – Many studies use the labor migration function for empirical analysis, but most of them estimated the function by a simple single regression which shows that the labor movement from the agricultural sector to the other sectors increases as a result of an expanding wage gap. However, off-farm labor movement reduces the wage gap between sectors adversely. Therefore, a reverse causal relation exists between labor movement and the wage gap between sectors. The endogeneity problem was considered as analyzing the measurement of the labor migration function.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 3 (2011)
    Issue (Month): 1 (January)
    Pages: 67-79

    in new window

    Handle: RePEc:eme:caerpp:v:3:y:2010:i:1:67-79
    Contact details of provider: Web page:

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: Email:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Larson, Donald & Mundlak, Yair, 1997. "On the Intersectoral Migration of Agricultural Labor," Economic Development and Cultural Change, University of Chicago Press, vol. 45(2), pages 295-319, January.
    2. Goldsmith, Peter D. & Gunjal, Kisan & Ndarishikanye, Barnabe, 2004. "Rural-urban migration and agricultural productivity: the case of Senegal," Agricultural Economics, Blackwell, vol. 31(1), pages 33-45, July.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:3:y:2010:i:1:67-79. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.