Forced Off Farm? Labor Reallocation Response to Government Land Requisition in China

6/4/2018 浏览量:334

Author: Shuang Ma, Ren Mu

Abstracts: Land  requisition has been an important process by which Chinese local  governments promote urbanization and generate revenue. This study investigates  the impacts of land requisition on farmers’ decisions of labor allocation  between agricultural and nonagricultural sectors. We argue that, conditional on  village fixed effects, land requisition can be explored as a quasi-natural  experiment to identify the relationship between land rights and labor allocation  of farmers. We find that young farmers (age 16-44) are not affected in their  migration decisions by land loss through requisition, while some older farmers  (age 45-55) are affected. In response to land loss through requisition, the  probability that older farmers living beyond the mean distance from the county  seat migrates to cities increases by 8.5 percentage points. An econometric test  confirms that the finding is unlikely to be driven by unobserved variables  associated with household experience of land loss. This finding raises concerns  about the wellbeing of the farmers who may not be competitive in the urban labor  market and therefore unlikely to leave farming unless they have to.

Forced Off Farm Labor Reallocation Response to Government Land Requisition in China.pdf