IDEAS home Printed from
   My bibliography  Save this paper

Migration and Land Rental as Risk Response in Rural China


  • Ward, Patrick S.
  • Shively, Gerald E.


Households in developing countries take various actions to smooth income or consumption as a means of managing or responding to risk. One of the principal means of smoothing income is through the diversification of income sources, including non-farm employment and rural-urban migration. An important consumption smoothing strategy involves the accumulation and depletion of assets. We examine migration and land rental market participation as responses to risk in rural China. Using a longitudinal data set comprised of households in nine provinces in China from 1991 through 2006, we are able to test for the effect of various manifestations of underlying idiosyncratic and covariate income risk on household responses. We find that covariate risks increase land rental market participation, but decrease participation in migration. Idiosyncratic income risks do not affect household rental market participation, perhaps suggesting that intra-village risk sharing is sufficient for households to smooth consumption after experiencing idiosyncratic shocks. Because the death of a household reduces a household's redundant labor, these idiosyncratic labor shocks significantly lower the likelihood that a household will participate in migration.

Suggested Citation

  • Ward, Patrick S. & Shively, Gerald E., 2011. "Migration and Land Rental as Risk Response in Rural China," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103379, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103379

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. 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).
    2. Shaikh Eskander & Edward Barbier, 2016. "Adaptation to natural disasters through the agricultural land rental market: evidence from Bangladesh," GRI Working Papers 236, Grantham Research Institute on Climate Change and the Environment.
    3. repec:ags:gewipr:261719 is not listed on IDEAS

    More about this item


    International Development; Labor and Human Capital; Risk and Uncertainty;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103379. 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: (AgEcon Search). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.