Impacts of Migration on Household Production Choices: Evidence from China

The great migration from Chinese farms to cities during the past several decades ranks among the most economically consequential of modern population movements. We use a national sample of rice-producing Chinese households to examine the effects of that migration on agricultural production. Our assessment involves evaluating four alternative theories of labour market equilibrium in the framework of an expanded agricultural household model. Migration's farm production impacts appear to be slight, not on account of farm labour market perfections or remittance-financed technological improvements, but by substituting a reduction in leisure and other low-return activities for lost labour.