Rural Households Decisions Towards Income Diversification: Evidence from a Township in Northern China

GATE (Groupe d’Analyse et de Théorie Économique) Working Paper 09-23

27 Pages Posted: 9 Dec 2009 Last revised: 8 Oct 2010

See all articles by Sylvie Démurger

Sylvie Démurger

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Martin Fournier

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Weiyong Yang

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI)

Date Written: November 1, 2009

Abstract

Economic reforms in rural China have brought opportunities to diversify both within-farm activities and off-farm activities. Participation in these activities plays an important role in increasing rural households’ income. This paper analyzes the factors that drive rural households and individuals in their income-source diversification choices for ten villages in Northern China. At the household level, we distinguish three types of diversification as opposed to grain production only: within farm (non-grain production) activities, local off-farm activities, and migration. At the individual level, we analyze the determinants of participation in three different types of jobs as compared to agricultural work: local off-farm employment, local self-employment and migration. At the household level, we find that land and labor availability stimulates on-farm diversification. Local off-farm activities are mostly driven by household wealth and credit constraints, while migration decisions strongly depend on the household age and composition. At the individual level, we find a clear gender and age bias in access to off-farm activities that are mostly undertaken by male and by young people. More surprisingly, education is found to play a role for accessing local wage employment but not in migration decision. As at the household level, the household assets position is found to strongly affect participation in any off-farm activity.

Keywords: income-source diversification, agricultural households, off-farm employment, China

JEL Classification: J2, R2, Q1, O53

Suggested Citation

Démurger, Sylvie and Fournier, Martin and Yang, Weiyong, Rural Households Decisions Towards Income Diversification: Evidence from a Township in Northern China (November 1, 2009). GATE (Groupe d’Analyse et de Théorie Économique) Working Paper 09-23, Available at SSRN: https://ssrn.com/abstract=1517783 or http://dx.doi.org/10.2139/ssrn.1517783

Sylvie Démurger (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France
(33 4) 72 86 61 05 (Phone)
(33 4) 72 86 60 90 (Fax)

HOME PAGE: http://www.gate.cnrs.fr/spip.php?article22

Martin Fournier

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Weiyong Yang

Université d'Auvergne - Clermont 1 - Centre d'Etudes et de Recherches sur le Developpement International (CERDI) ( email )

65 Boulevard Francois Mitterrand
63000 Clermont-Ferrand Cedex 1
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
67
Abstract Views
973
rank
399,224
PlumX Metrics