Land rental markets and labor productivity: Evidence from rural China

Jian Zhang, Ashok K. Mishra, Peixin Zhu

Research output: Contribution to journalArticle

Abstract

This study investigates the impact of the land rental market on labor productivity in rural China. Particular attention is given to farm and nonfarm labor productivity. Using 2012 household-level data and a multinomial endogenous switching treatment regression technique, we find that rural households renting in farmland increased labor productivity in the farm sector by about 55%, whereas labor productivity in the nonfarm sector decreased by about 6%. We also find that rural households renting out farmland had lower labor productivity in both the farm and nonfarm sectors by 13% and 9%, respectively. More family labor transferred from the farm to the nonfarm sector after renting out land.

Original languageEnglish (US)
JournalCanadian Journal of Agricultural Economics
DOIs
StateAccepted/In press - Jan 1 2020

Keywords

  • farm sector
  • labor productivity
  • land rental market
  • nonfarm sector

ASJC Scopus subject areas

  • Global and Planetary Change
  • Ecology
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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