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What Stayers Do? Capital Endowments and On-Farm Transitions in Rural China

Author

Listed:
  • Hao Wang
  • Jan Fidrmuc
  • Qi Luo
  • Mingzhong Luo

Abstract

While much research on China has focused on rural to urban migration and transitions of rural households away from agriculture, little is known about the changes within the rural agricultural sector. Yet, the agricultural sector continues to account for a large share of employment. We study the determinants of transitions from subsistence farming into either formal agricultural employment or agricultural self-employment. We pay particular attention to the role of capital endowments. We find that financial capital plays a relatively limited role, compared to natural, human, social and political capital.

Suggested Citation

  • Hao Wang & Jan Fidrmuc & Qi Luo & Mingzhong Luo, 2018. "What Stayers Do? Capital Endowments and On-Farm Transitions in Rural China," CESifo Working Paper Series 7306, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_7306
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    More about this item

    Keywords

    on-farm transitions; rural household livelihood strategy; capital endowments; labor allocation;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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