Land rental market and agricultural labor productivity in rural China: A mediation analysis

Jian Zhang; Ashok K. Mishra; Peixin Zhu; Xiaoshun Li

doi:10.1016/j.worlddev.2020.105089

Land rental market and agricultural labor productivity in rural China: A mediation analysis

Jian Zhang, Ashok K. Mishra, Peixin Zhu, Xiaoshun Li

Agribusiness, Morrison School of

Research output: Contribution to journal › Article › peer-review

46 Scopus citations

Abstract

Agricultural labor productivity (ALP) remains low in China. The unique land tenure system and fast-growing land rental market in China provides a new perspective in understanding the ALP problem. This study investigates the impact of participation in the land rental market on operator households’ agricultural labor productivity in rural China. Using national representative farm-level data, propensity matching score (PSM), and mediation analysis, we find that farm households’ ALP has improved about 43% after renting in farmland. The mediation analysis reveals that farm size in cultivation, family farm labor input, and capital services input are mediating variables through which land rental affects ALP. The indirect effect of land rental on labor productivity is mainly through the single-variable mediation path, namely farm size, and family farm labor input. Additionally, the two-variable mediation path is through farm size and capital services input, farm size, and family farm labor input.

Original language	English (US)
Article number	105089
Journal	World Development
Volume	135
DOIs	https://doi.org/10.1016/j.worlddev.2020.105089
State	Published - Nov 2020

Keywords

Agricultural labor productivity
China
Land rental market
Mediation analysis

ASJC Scopus subject areas

Geography, Planning and Development
Development
Sociology and Political Science
Economics and Econometrics

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10.1016/j.worlddev.2020.105089

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title = "Land rental market and agricultural labor productivity in rural China: A mediation analysis",

abstract = "Agricultural labor productivity (ALP) remains low in China. The unique land tenure system and fast-growing land rental market in China provides a new perspective in understanding the ALP problem. This study investigates the impact of participation in the land rental market on operator households{\textquoteright} agricultural labor productivity in rural China. Using national representative farm-level data, propensity matching score (PSM), and mediation analysis, we find that farm households{\textquoteright} ALP has improved about 43% after renting in farmland. The mediation analysis reveals that farm size in cultivation, family farm labor input, and capital services input are mediating variables through which land rental affects ALP. The indirect effect of land rental on labor productivity is mainly through the single-variable mediation path, namely farm size, and family farm labor input. Additionally, the two-variable mediation path is through farm size and capital services input, farm size, and family farm labor input.",

keywords = "Agricultural labor productivity, China, Land rental market, Mediation analysis",

author = "Jian Zhang and Mishra, {Ashok K.} and Peixin Zhu and Xiaoshun Li",

note = "Funding Information: This paper was sponsored by the Chinese Ministry of Education Humanities and Social Sciences Youth Fund (Approval number: 20YJC630205 ); National Natural Science Foundation of China (Approval numbers: 71373128 and 71704177 ); University Superior Subject Construction Project of Jiangsu Province, China (Surveying and Mapping Science and Technology). Publisher Copyright: {\textcopyright} 2020 Elsevier Ltd",

year = "2020",

month = nov,

doi = "10.1016/j.worlddev.2020.105089",

language = "English (US)",

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AU - Mishra, Ashok K.

AU - Zhu, Peixin

AU - Li, Xiaoshun

N1 - Funding Information: This paper was sponsored by the Chinese Ministry of Education Humanities and Social Sciences Youth Fund (Approval number: 20YJC630205 ); National Natural Science Foundation of China (Approval numbers: 71373128 and 71704177 ); University Superior Subject Construction Project of Jiangsu Province, China (Surveying and Mapping Science and Technology). Publisher Copyright: © 2020 Elsevier Ltd

PY - 2020/11

Y1 - 2020/11

N2 - Agricultural labor productivity (ALP) remains low in China. The unique land tenure system and fast-growing land rental market in China provides a new perspective in understanding the ALP problem. This study investigates the impact of participation in the land rental market on operator households’ agricultural labor productivity in rural China. Using national representative farm-level data, propensity matching score (PSM), and mediation analysis, we find that farm households’ ALP has improved about 43% after renting in farmland. The mediation analysis reveals that farm size in cultivation, family farm labor input, and capital services input are mediating variables through which land rental affects ALP. The indirect effect of land rental on labor productivity is mainly through the single-variable mediation path, namely farm size, and family farm labor input. Additionally, the two-variable mediation path is through farm size and capital services input, farm size, and family farm labor input.

AB - Agricultural labor productivity (ALP) remains low in China. The unique land tenure system and fast-growing land rental market in China provides a new perspective in understanding the ALP problem. This study investigates the impact of participation in the land rental market on operator households’ agricultural labor productivity in rural China. Using national representative farm-level data, propensity matching score (PSM), and mediation analysis, we find that farm households’ ALP has improved about 43% after renting in farmland. The mediation analysis reveals that farm size in cultivation, family farm labor input, and capital services input are mediating variables through which land rental affects ALP. The indirect effect of land rental on labor productivity is mainly through the single-variable mediation path, namely farm size, and family farm labor input. Additionally, the two-variable mediation path is through farm size and capital services input, farm size, and family farm labor input.

KW - Agricultural labor productivity

KW - China

KW - Land rental market

KW - Mediation analysis

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Land rental market and agricultural labor productivity in rural China: A mediation analysis

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Keywords

ASJC Scopus subject areas

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