Journal
JOURNAL OF DEVELOPMENT ECONOMICS
Volume 81, Issue 1, Pages 25-60Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jdeveco.2005.04.006
Keywords
labor markets; migration; risk; insurance; rural China
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This paper uses a unique panel of data from rural China to analyze the impact of expanding connections to off-farm labor markets on the income and consumption of farm households. With stronger village ties to both migrant and local off-farm labor markets, households in previously autarkic village communities experience reduced exposure to shocks affecting agricultural production. The analyses presented in this paper control for the persistent effect of past shocks influencing income and consumption, household attrition potentially correlated with shocks, and endogeneity of household demographic composition, land holdings and village network connections to migrant and local labor markets. (c) 2005 Elsevier B.V. All rights reserved.
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