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Migration And Local Off-Farm Working In Rural China


  • Chen, Zhuo
  • Huffman, Wallace E.
  • Rozelle, Scott


The paper analyzes the decision-making of rural Chinese households with three alternatives: stay exclusively on farm, take local off-farm jobs, and migrate. Based on a survey of rural Chinese households, we extend the dynamic discrete choice model of Wooldridge (2002a,b) to a trichotomous setting and apply it to a five-year panel study. We observe statistically significant state dependence between the current period response and decisions of the previous time period. We also conclude that education, household size, and social networks play important roles in job-location decision-making of rural Chinese households.

Suggested Citation

  • Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2004. "Migration And Local Off-Farm Working In Rural China," 2004 Annual meeting, August 1-4, Denver, CO 20075, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea04:20075

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    References listed on IDEAS

    1. Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2002. "Employment, emerging labor markets, and the role of education in rural China," China Economic Review, Elsevier, vol. 13(2-3), pages 313-328.
    2. Huffman, Wallace E., 2001. "Human capital: Education and agriculture," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 7, pages 333-381 Elsevier.
    3. Benjamin, Dwayne & Brandt, Loren & Giles, John, 2005. "The Evolution of Income Inequality in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 769-824, July.
    4. Lee, Lung-Fei, 1992. "On Efficiency of Methods of Simulated Moments and Maximum Simulated Likelihood Estimation of Discrete Response Models," Econometric Theory, Cambridge University Press, vol. 8(04), pages 518-552, December.
    5. Huffman, Wallace E., 1991. "Agricultural Household Models: Survey and Critique," Staff General Research Papers Archive 11008, Iowa State University, Department of Economics.
    6. William L. Parish & Xiaoye Zhe & Fang Li, "undated". "Nonfarm Work and Marketization of the Chinese Countryside," University of Chicago - Population Research Center 95-6, Chicago - Population Research Center.
    7. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
    8. Tuan, Francis & Somwaru, Agapi & Diao, Xinshen, 2000. "Rural labor migration, characteristics, and employment patterns," TMD discussion papers 63, International Food Policy Research Institute (IFPRI).
    9. Krusekopf, Charles C., 2002. "Diversity in land-tenure arrangements under the household responsibility system in China," China Economic Review, Elsevier, vol. 13(2-3), pages 297-312.
    10. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-782, July.
    11. John Knight & Lina Song & Jia Huaibin, 1999. "Chinese rural migrants in urban enterprises: Three perspectives," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 73-104.
    12. Zhu, Nong, 2002. "The impacts of income gaps on migration decisions in China," China Economic Review, Elsevier, vol. 13(2-3), pages 213-230.
    13. Johnson, D. Gale, 2003. "Provincial migration in China in the 1990s," China Economic Review, Elsevier, vol. 14(1), pages 22-31.
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    Cited by:

    1. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    2. Stephan Brosig & Thomas Glauben & Thomas Herzfeld & Scott Rozelle & Xiaobing Wang, 2007. "The dynamics of Chinese rural households' participation in labor markets," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 167-178, September.
    3. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2008. "Labor market participation of Chinese agricultural households: Empirical evidence from Zhejiang province," Food Policy, Elsevier, vol. 33(4), pages 329-340, August.
    4. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    5. BROSIG, Stephan & GLAUBEN, Thomas & Herzfeld, Thomas & WANG, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," China Economic Review, Elsevier, vol. 20(2), pages 360-371, June.
    6. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2005. "Labor Market Participation of Chinese Agricultural Households," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24516, European Association of Agricultural Economists.

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