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Re-Examination of the Surplus Agricultural Labour in China

Author

Listed:
  • Fung Kwan

    (Department of Economics, University of Macau)

  • Yanrui Wu

    (Business School, University of Western Australia)

  • Shuaihe Zhuo

    (Department of Economics, University of Macau)

Abstract

This paper contributes to the pool of studies of rural underemployment in China. It is devoted to the conceptualization and measurement of surplus labour. The agricultural labour requirement function is estimated by the stochastic frontier analysis (SFA) with China’s prefecture-level data. Surplus labour or inefficient labour is obtained by subtracting the required labour from the actual labour participated in agriculture. Our analysis indicates that the existing size of agricultural surplus labour in rural China is still significantly large with the continued practice of the household registration system and China’s WTO membership. However, the size has been decreasing over the last decade. We thus conclude that China is probably experiencing the second stage of the Lewis-Fei-Ranis dualistic economic framework.

Suggested Citation

  • Fung Kwan & Yanrui Wu & Shuaihe Zhuo, 2012. "Re-Examination of the Surplus Agricultural Labour in China," Economics Discussion / Working Papers 12-25, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:12-25
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    File URL: https://www.business.uwa.edu.au/__data/assets/pdf_file/0018/2254005/12-25-Re-examination-of-the-surplus-agricultural-labour-in-China.pdf
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    Cited by:

    1. Anne Villamil & Xiaobing Wang & Yuxiang Zou, 2020. "Growth and development with dual labor markets," Manchester School, University of Manchester, vol. 88(6), pages 801-826, December.
    2. Kwan, Fung & Zhang, Yang & Zhuo, Shuaihe, 2018. "Labour reallocation, productivity growth and dualism: The case of China," International Review of Economics & Finance, Elsevier, vol. 57(C), pages 198-210.
    3. Kwan, Fung & Wu, Yanrui & Zhuo, Shuaihe, 2018. "Surplus agricultural labour and China's Lewis turning point," China Economic Review, Elsevier, vol. 48(C), pages 244-257.

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