Self-employment in Rural China:Its Development,Characteristics,and Relation to Income

Changes in the employment structure in rural China were studied with a focus on off-farm self-employment.Data from the Chinese Household Income Project surveys were used,covering the same 14 provinces from 1988 to 2018.We found that the proportion of adults in rural China with self-employment as their primary form of off-farm employment increased from only 2 percent in 1988 to 11 percent in 2013,with no further increases through 2018.In 1988 and 1995,the rate of self-employment was highest in the eastern region but this regional pattern subsequently disappeared.The probability of being self-employed in rural China was higher among married males than among unmarried persons.Having a migration experience increased the likelihood of being self-employed.Since 1995,self-employed households have had a higher average income than other categories of household.Based on estimates of income functions,we conclude that the income premium from being self-employed increased rapidly from 1988 to 1995 to become remarkably large when only a few adults were self-employed.However,as a larger fraction of the rural population entered self-employment,the payoff from being self-employed has rapidly diminished,although it was still substantial in 2018.     

Do Poor Rural Households Produce Less Grain than Non-poor Rural Households

China＇s poor rural households produce substantially less grain compared with non-poor rural households. The present paper applies a decomposition approach and uses China＇s rural household survey data to investigate the causes of this grain output gap The paper first compares the grain output gap between poor and non-poor rural households, and then decomposes the gap into differences in yield and area sown, The results indicate that the gap in grain output mainly results from differences in the amount of inputs used in production. Differences in the number of labor days and the level of intermediate inputs account for 13.6 and 47.S percent of the gap, respectively. Poor rural households are also less efficient in their use of intermediate inputs, which contributes to 13.2percent of the gap. However, the efficiency of poor households＂ labor days reduces the gap by 7.2 percent, while agricultural physical capital, househoM head education and agricultural training have no substantial impact on the household grain output gap.     

Meeting the Health-care Needs of the Rural Elderly： The Unique Role of Village Doctors

Despite their recent deterioration, village clinics have historically been an important source of health care for the poor and elderly in rural China. In this paper, we examine the current role of village clinics, the patients who use them and some of the services they provide. We focus specifically on the role of village clinics in meeting the health-care needs of the rural poor and elderly. We find that although clinics are continuing to decline financially, they remain a source of care for the rural elderly and poor. We estimate that the elderly are 10-15 percent more likely than young individuals to seek care at a clinic. We show that clinics provide many unique services to support the rural elderly （and the elderly poor）, such as in-home patient care, the option for patients to pay on credit, and free and discounted services.     

Regional convergence and migration： The case of Mongolia 1989-2004

This paper investigates the convergence of GDP per capita across Mongolia＇s twenty-two aimags and five regions. According to international and domestic surveys, one third of the Mongolian population is living under the poverty line. Specifically, poverty is deeper in rural areas than in urban areas. Thus, one main objective of economic growth should be reducing the cross-regional income differences and maintaining real long-run per capita income growth. However, in Mongolia there is almost no research on regional economic development and regional income disparities. It is the first time that the speed of convergence to the steady state has been estimated, using a Mongolian cross-regional data set （1989-2004）. The results show that there is convergence across all Mongolian aimags and regions. The speed of convergence towards the steady state position is 3 percent in the Solow model and 4.3 percent in the Ramsey model. That is substantially higher than other convergence studies. The study also finds that migration has played an important role in the evolution of regional disparities.     

Determinants of Household Income Mobility in Rural China

This article uses multivariate regression and decomposition analyses to assess household income mobility determinants and their contributions to income mobility in rural China from 1989 to 2006. The findings indicate that households with lower initial income level, higher share of wage income, higher educational level of household members, larger number of non-agricultural employed household members and younger heads are more mobile. Moreover, besides initial income, change in the share of wage income, change in the share of non-agricultural employed household members, and change in average year of education of household members are the most important factors that account for income mobility. These findings necessitate more emphasis on policies that promote non-agricultural employment and education to enhance household income mobility in rural China.     

农村义务教育辍学原因与农户家庭基本情况的关联分析

The main purpose of this paper is concerned about children‘s discontining study in rural areas or dropout phenomena in rural children‘s education, and their relationships with the economic condition of the rural households. The conclusion is that family income, parents‘ education level and structure of family operations have cross-impact on the education of a country child. To reduce the dropout rate of rural children, a key measure is to increase farmer‘s income, but income increase alone is not sufficient. It is argued that reducing dropout is a relatively long-term process that cannot be solved with shot-term government policy adjustment. To increase the rate of junior middle school education in rural areas, an overall economic and social development in rural areas is necessary.     

China＇s Labor Transition and the Future of China＇s Rural Wages and Employment

This paper contributes to the assessment of China＇s rural labor markets. According to our data, the increase in off-farm employment that China experienced during the 1980s and 1990s continued during the 2000s. Our analysis shows that migration has become the most prevalent off-farm activity, although the destination of migrants is shifting from outside of one＇s province to destinations closer to home. The present paperfinds that large shares of male and female individuals, especially those under 40 years, are working off the farm. These findings represent an important contribution to the labor economics field. First, the results of the present paper reveal that the labor transition from the agricultural sector to the non-agricultural sector for key segments of China＇s rural labor force is nearly complete. Second, although a large share of China ＂s rural labor force work in agriculture, most of these workers are older men and women （and likely would not be willing to take low-wage, labor-intensive jobs）. Third, the rising unskilled wage rate in China is partially a result of the tightening of the labor force in the young age cohorts. Finally, due to factors associated with the one child policy and other demographic transition forces, successive age cohorts will continue to fall in absolute number in the coming decade. Assuming China＇s growth continues, we expect to see further wage increases since it will take higher wages to coax more workers to work off the farm.     

Retesting the Separability of China＇s Rural Households

This article retests the separability of China’s rural households in light of growing doubt about the sustainability of high economic growth in China.If a household’s production decisions are "separable "from the household’s consumption decisions,generally this suggests there is no surplus labor.Many scholars aver that China’s surplus rural labor has spurred rapid economic growth,but concerns have arisen as to whether China still has surplus labor available.We investigate this issue using rural household panel data from 1993 to 2009.The regression results confirm that households in rural China have progressed from being non-separable to separable.The estimation results for both the entire country and regions reject the separability hypothesis before 2004 but fail to reject the hypothesis after 2004(with the exception of the central region).These results suggest that China ’s surplus labor supply is dwindling,especially in the eastern and the western regions.The sustainability of China’s high economic growth is questionable in the absence of a large reservoir of surplus rural labor.     

Strategy to E-learning Applied in Higher Education

Today when people talk about education, the conversation frequently tums to a new type of education called ＂E-learning＂, characterized by new cultural dynamics： globalization, ＂the new economy＂, and the web. It is also to talk about a new form of social interaction. What is E-learning？ In this paper, we give a clear explanation. In order to develop the E-learning in education, we shall set out to improve the competencies of the instructors and set up a strong knowledge platform. And then, the paper provides a strategy to expand E-learning in higher education.     

Exchange Rate Pass-through in China

During the second half of 2007 and early part of 2008 when there were intense inflationary pressures in China, RMB appreciation was advocated as a means of helping to curb inflation. The effectiveness of appreciation in controlling inflation depends on the impact of exchange rate movements on import and domestic prices. Our analysis finds fairly large and speedy exchange rate pass-through （ERPT） to import prices： 50 and 60percent for the short run and long run, respectively. However, the degree of ERPT decreases along the price chain from upstream to downstream prices. ERPT for consumer prices, the most downstream prices, is much milder and has substantial lags. A 10-percent rise in the nominal effective exchange rate will dampen consumer prices by 1.1 percent within a year, with very little pass-through in the first half year, and by 2.0percent over the long run. These findings, particularly the ERPT to consumer prices, suggest that RMB appreciation can help to reduce inflationary pressures over the longer term. However, it is unlikely to provide rapid relief to the current round of high inflation because of the long lags in ERPZ. The RMB needs to strengthen in effective terms to exert the desired dampening impact on prices.     

Non‐farm Income Diversification in Rural Ghana: Patterns and Determinants

Abstract: Evidence abounds in the rural livelihoods literature that rural households do not only receive a significant proportion of their incomes from non‐farm sources, but also it is a significant source of employment for rural folks. This paper examines the pattern and determinants of non‐farm income diversification in rural Ghana. Results show that off‐farm income constituted 43 percent of rural household income in 2005/6. Female‐headed households tend to have larger off‐farm income shares compared to male‐headed households. Non‐farm income shares followed the same gender pattern albeit less pronounced. Unlike in Latin America and Asia, in rural Ghana, non‐farm self‐employment income is more important than non‐farm wage‐employment income. Regression results show that the gender composition of households, age, education, and access to credit, electricity and markets are important determinants of multiple non‐farm activities and non‐farm income. The findings call for strategies that can help rural households maximize the benefits from income diversification.     

Inequality and Determinants of Earnings in Malaysia, 1984–1997*

Using three large nationally‐representative Malaysian Household Income Surveys from 1984, 1989 and 1997, the present paper examines inequality and determinants of earnings. During the period 1984–1997, Malaysia's real per capita GDP increased by approximately 70percent, the participation rates for both men and women went up among all age groups, and the average number of years of schooling increased by 1.2years. There was a significant relative wage improvement among the bottom deciles. The rate of return to an additional year of schooling remained high (at 10percent), despite the huge increase in the supply of the highly educated. The stable overall rate, however, masks an increased rate of return on women's education, and a decreased rate for men. Wage discrimination against women amounts to 16–20percent, and the bias has increased in 1997. The pro‐Chinese earning ethnic bias is estimated at 31percent.     

Off‐farm wage returns to education: Evidence from Lesotho

This article presents estimates of off‐farm wage returns to education in rural areas of Lesotho. Results from a sample survey conducted in the northern Lowlands and Foothills of Lesotho indicate that returns to education are relatively higher for people wage‐employed in Lesotho than those wage‐employed as migrants in South Africa. For people working within Lesotho, education appears to have a significant and positive effect on off‐farm wages. Most people working within Lesotho are employed as teachers, nurses and civil servants and these job categories require an educated labour force. For people wage‐employed in South Africa, education appears not to have a significant effect on off‐farm wages. Most men working in South Africa are employed as labourers in mines while women working in South Africa are employed as domestic servants.     

Returns to Education Using a Sample of Twins: Evidence from Japan*

The objective of this article is to measure the causal effect of education on earnings using a large dataset of twins compiled in Japan with wide‐ranging socioeconomic information. Recent research conducted in China showed that, contrary to the case in Western countries, ability bias is large in estimating the return to education. It is argued that the low rate of return in China is in part due to the competitive and exam‐oriented education system, which is similar to the system in Japan. The empirical results in our study show that the estimated rate of return to education using the sample of identical twins in Japan is 9.3 percent even after omitted ability bias and measurement errors in self‐reported schooling were corrected. Our findings suggest that the conventional OLS estimate is not significantly contaminated by potential biases in Japan.     

Wage Returns to Schooling in Nigeria

Abstract: In the last two decades, primary and secondary school enrollment rates have declined in Nigeria while enrollment rates in post‐secondary school have increased. This paper estimates from the General Household Survey for Nigeria the private returns to schooling associated with levels of educational attainment for wage and self‐employed workers. The estimates for both men and women are small at primary and secondary levels, 2–4 percent, but are substantial at post‐secondary education level, 10–15 percent. These schooling return estimates may account for the recent trends in enrollments. Thus, increasing public investment to encourage increased attendance in basic education is not justifiable on grounds of private efficiency, unless investments to increase school quality have higher private returns. With high private returns to post‐secondary schooling, students at this level should pay tuition, to recoup more of the public costs of schooling, which may be redistributed to poor families through scholarships.     

Evolution of Education Premiums in Cambodia: 1997–2007

This paper evaluates education premiums in Cambodia over the past decade using data from the 1997, 2003–2004 and 2007 Socio‐economic Surveys of Households. The Cambodian labor market has undergone a transformation over the past decade. In 1997, the earnings of workers employed for wages exhibited limited association with education and skills. The picture was dramatically different by 2003 and more so by 2007. The profitability of education had increased sharply, especially for women. There is evidence that the human capital model is now applicable to both men and women, resulting in a wider distribution of earnings. Instrumental variables estimates of the return to an additional year of schooling for male wage earners are found to be higher than the corresponding OLS estimates, but only in the private sector.     

Early Experience and Later Outcomes of Education: Schooling Transition Evidence from Indonesia

This paper investigates the effect of early school experience on later educational attainment. Using the Indonesia Family Life Survey (IFLS), we find that students who repeat a grade at primary school are less likely to progress to junior high school. We also find that grade retention is associated with lower rates of transition from junior high school to senior high school. The relationship persists across years and samples. Meanwhile, the age of students when starting school and the hours they spend there have limited effects on whether they continue their schooling. We also observe that the effects of parental education and household income on the transition of students from primary school to junior high school are weakening. Given the long-term impact of grade retention, policymakers should be cautious when recommending it for underachieving children and should look for alternatives.     

Parental Education and child Nutrition in Indonesia

This study uses 1989 Susenas household data to examine the impact of parental education on pre-school children's nutritional status, as measured by weight-for-age Z-scores. Reduced form regressions are estimated separately for boys and girls in rural and urban areas; explanatory variables include mother's and household head's education; per capita household expenditure; and aspects of the household sanitary environment. The analysis controls for influence of unobserved heterogeneity at village level, e.g. differences in prices and medical service provision. The estimates show a significant effect of parental schooling on child health status, varying between urban and rural areas, and by child gender and age. Mothers with secondary education typically have healthier boys than those with less schooling, while this effect is seen for girls only if the mother has more than secondary education. Maternal schooling significantly affects 2–5 year olds' health, but has little direct effect on that of younger children.     

Effects of Educational Mistmatch on Wages in the Korean Labor Market*

Using data on Korean workers from the Programme for the International Assessment of Adult Competencies, the present study empirically investigates the incidence and wage effects of educational mismatch. Among full‐time workers aged 25–54, approximately 27 percent are overeducated and 15 percent are undereducated. Our results reveal that, after controlling for omitted variable bias and measurement errors, return to an additional year of overeducation is significantly less than that to a year of required education, whereas undereducated workers do not appear to suffer wage penalties associated with their deficit schooling. The findings also show that returns to a year of overeducation vary across fields of study. The returns to overeducation for college graduates from health and welfare, engineering and manufacturing, and social sciences, business and law are relatively high compared with those in agriculture, services, and humanities and arts.     

Impact of Childcare and Eldercare on Off‐farm Activities in Rural China

Using individual data collected in rural China and adopting Heckman's two‐step function, we examined the impact of childcare and eldercare on laborers' off‐farm activities. Our study finds that having school‐aged children has a negative impact on rural laborers' migration decisions and a positive impact on their decision to work in the local off‐farm employment market. As grandparents can help to take care of young children, the impact of preschoolers is insignificant. Having elderly family to care for decreases the income earned by female members of the family. Although both men and women are actively engaged in off‐farm employment today in rural China, this study shows that women are still the primary care providers for both children and the elderly. Therefore, reforming public school enrollment and high school/college entrance examination systems so that migrant children can stay with their parents, this will help rural laborers to migrate to cities. The present study also calls for more public services for preschoolers and the elderly in rural China.