Migration and Land Rental as Responses to Income Shocks in Rural China

Published

Journal Article

© 2015 Wiley Publishing Asia Pty Ltd. Using longitudinal household survey data from rural China and an identification strategy based on observed rainfall realizations, we are able to test household responses to idiosyncratic and covariate income shocks. We find that negative idiosyncratic income shocks increase migration and elicit household out rental of land. The effect of covariate income shocks is generally dependent on both the timing and the nature of the shock. Our results suggest that rainfall deficiencies during paddy maturing or harvesting seasons reduce the number of migrants by raising the marginal value product of farm labour, thereby increasing the opportunity costs associated with migration.

Full Text

Duke Authors

Cited Authors

  • Ward, PS; Shively, GE

Published Date

  • October 1, 2015

Published In

Volume / Issue

  • 20 / 4

Start / End Page

  • 511 - 543

Electronic International Standard Serial Number (EISSN)

  • 1468-0106

International Standard Serial Number (ISSN)

  • 1361-374X

Digital Object Identifier (DOI)

  • 10.1111/1468-0106.12072

Citation Source

  • Scopus