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Can land transfer through land cooperatives foster off-farm employment in China?

Author

Listed:
  • Liu, Ziming
  • Rommel, Jens
  • Feng, Shuyi
  • Hanisch, Markus
Abstract
Functioning land markets are necessary for an increase in off-farm employment. However, there is limited empirical evidence on the impact of land transfer on off-farm employment in rural China. This paper investigates the drivers of households' cooperative membership, which is equivalent to transferring land through land cooperatives, and its impact on off-farm employment. Using a two-step control function approach and data from Suzhou and Yangzhou (Jiangsu province), we do not find a general effect of cooperative membership on household heads' current off-farm employment, though the effect is large for households which had surplus agricultural labor before cooperative initiation. The effect is also positive and large for household heads without off-farm experience and households located in Yangzhou. Policy-makers should be aware of the distributional consequences of these heterogeneous effects.

Suggested Citation

  • Liu, Ziming & Rommel, Jens & Feng, Shuyi & Hanisch, Markus, 2017. "Can land transfer through land cooperatives foster off-farm employment in China?," China Economic Review, Elsevier, vol. 45(C), pages 35-44.
    • Handle: RePEc:eee:chieco:v:45:y:2017:i:c:p:35-44
    DOI: 10.1016/j.chieco.2017.06.002
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