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

35 Pages Posted: 21 Feb 2019

See all articles by Hao Wang

Hao Wang

Brunel University London - Department of Economics and Finance

Jan Fidrmuc

Brunel University - Department of Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute

Qi Luo

South China Agricultural University - College of Economics and Management

Mingzhong Luo

South China Agricultural University - College of Economics and Management

Date Written: 2018

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.

Keywords: on-farm transitions, rural household livelihood strategy, capital endowments, labor allocation

JEL Classification: D130, O180, Q100, Q120

Suggested Citation

Wang, Hao and Fidrmuc, Jan and Luo, Qi and Luo, Mingzhong, What Stayers Do? Capital Endowments and On-Farm Transitions in Rural China (2018). CESifo Working Paper No. 7306. Available at SSRN: https://ssrn.com/abstract=3338635

Hao Wang (Contact Author)

Brunel University London - Department of Economics and Finance ( email )

Kingston Lane
Uxbridge, Middlesex UB8 3PH
United Kingdom

Jan Fidrmuc

Brunel University - Department of Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 266 528 (Phone)
+44 1895 269 770 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Qi Luo

South China Agricultural University - College of Economics and Management ( email )

China

Mingzhong Luo

South China Agricultural University - College of Economics and Management ( email )

China

Register to save articles to
your library

Register

Paper statistics

Downloads
10
Abstract Views
98
PlumX Metrics