The dynamics of Chinese rural households' participation in labor markets |
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Authors: | Stephan Brosig Thomas Glauben Thomas Herzfeld Scott Rozelle Xiaobing Wang |
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Affiliation: | Leibniz Institute of Agricultural Development in Central and Eastern Europe, Halle D-06120, Germany;Department of Social Sciences, Wageningen University and Research Centre, Agricultural Economics, The Netherlands and Rural Policy Group, Hollandseweg 1, building 201, NL-6706 KN Wageningen;Center for Environmental Sciences and Policy, Freeman Spogli Institute for International Studies, Stanford University, CA 94305-6065, USA |
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Abstract: | The work is devoted to the dynamics of labor market participation of Chinese rural households. Based on a theoretical farm household framework the choice between four distinct labor market participation states is empirically analyzed. Using household data over the period 1995–2002 from the province Zhejiang we apply a discrete time hazard approach to analyze households' labor market participation histories. In particular, we investigate the movements between autarky and participation in general and, more specifically, the shifts between part-time and full-time farming. Estimation results suggest significant duration dependence, more precisely, a decreasing risk of moving from one state to another with an increasing time a household occupies one of these states. Further, the likelihoods of starting any participation in labor markets and to start part-time farming are considerably higher than to end participation or to return to full-time farming. In addition, we find that labor market participation decisions are significantly related to several household and farm characteristics. |
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Keywords: | C41 J22 J24 J43 J62 Q12 |
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