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Rural households'decisions towards income diversification: Evidence from a township in northern China

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  • Sylvie Démurger

    () (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Martin Fournier

    () (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Yang Weiyong

    (University of International Business and Economics [Beijing, China])

Abstract

Economic reforms in rural China have brought opportunities to diversify both within-farm activities and off-farm activities. Participation in these activities plays an important role in increasing rural households' income. This paper analyzes the factors that drive rural households and individuals in their income-source diversification choices in a Northern China township. At the household level, we distinguish three types of diversification as opposed to grain production only: within farm (non-grain production) activities, local off-farm activities, and migration. We find that land availability stimulates on-farm diversification. Local off-farm activities are mostly driven by households' assets position and working resources, while migration decisions strongly depend on the household size and composition. At the individual level, we analyze the determinants of participation in three different types of jobs as compared to agricultural work: local off-farm employment, local self-employment and migration. We find a clear gender and age bias in access to off-farm activities that are mostly undertaken by male and by young people. The households' assets position as well as village networks are found to strongly affect participation in off-farm activities.

Suggested Citation

  • Sylvie Démurger & Martin Fournier & Yang Weiyong, 2010. "Rural households'decisions towards income diversification: Evidence from a township in northern China," Post-Print halshs-00550457, HAL.
  • Handle: RePEc:hal:journl:halshs-00550457
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00550457
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    References listed on IDEAS

    as
    1. Démurger, Sylvie & Gurgand, Marc & Li, Shi & Yue, Ximing, 2009. "Migrants as second-class workers in urban China? A decomposition analysis," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 610-628, December.
    2. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution of China's Rural Labor Markets During the Reforms," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 329-353, June.
    3. 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.
    4. Alan de Brauw & Scott Rozelle, 2008. "Reconciling the Returns to Education in Off-Farm Wage Employment in Rural China," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 57-71, February.
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    Cited by:

    1. repec:eee:anture:v:66:y:2017:i:c:p:170-182 is not listed on IDEAS
    2. Wenjia Peng & Hua Zheng & Brian E. Robinson & Cong Li & Fengchun Wang, 2017. "Household Livelihood Strategy Choices, Impact Factors, and Environmental Consequences in Miyun Reservoir Watershed, China," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-12, January.
    3. Kimty Seng, 2015. "Welfare Effects of Diversification on Farm Households in Cambodia," Economics Bulletin, AccessEcon, vol. 35(4), pages 2645-2663.
    4. Sènakpon F. A. Dedehouanou & John McPeak, 2018. "Diversify more or less? Household resilience and food security in rural Nigeria," Working Papers PMMA 2018-01, PEP-PMMA.
    5. Jin, Yanhong & Fan, Maoyong & Cheng, Mingwang & Shi, Qinghua, 2014. "The economic gains of cadre status in rural China: Investigating effects and mechanisms," China Economic Review, Elsevier, vol. 31(C), pages 185-200.
    6. Katsushi S. Imai & Jing You, 2011. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," Discussion Paper Series DP2011-35, Research Institute for Economics & Business Administration, Kobe University.
    7. Chavez, M.D. & Berentsen, P.B.M. & Oude Lansink, A.G.J.M., 2014. "Analyzing diversification possibilities on specialized tobacco farms in Argentina using a bio-economic farm model," Agricultural Systems, Elsevier, vol. 128(C), pages 35-43.
    8. repec:gam:jsusta:v:9:y:2017:i:12:p:2290-:d:122309 is not listed on IDEAS
    9. Démurger, Sylvie & Fournier, Martin, 2011. "Poverty and firewood consumption: A case study of rural households in northern China," China Economic Review, Elsevier, vol. 22(4), pages 512-523.
    10. Katsushi S. Imai & Jing You, 2014. "Poverty Dynamics of Households in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(6), pages 898-923, December.
    11. Jinhong Wan & Ruoxi Li & Wenxin Wang & Zhongmei Liu & Bizhen Chen, 2016. "Income Diversification: A Strategy for Rural Region Risk Management," Sustainability, MDPI, Open Access Journal, vol. 8(10), pages 1-12, October.
    12. Solomon Zena Walelign, 2016. "Livelihood strategies, environmental dependency and rural poverty: the case of two villages in rural Mozambique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(2), pages 593-613, April.
    13. Franz K. Huber & Michael Morlok & Caroline S. Weckerle & Klaus Seeland, 2015. "Livelihood Strategies in Shaxi, Southwest China: Conceptualizing Mountain–Valley Interactions as a Human–Environment System," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-26, March.

    More about this item

    Keywords

    income-source diversification; agricultural households; off-farm employment; China;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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