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This paper studies the effect of local off-farm employment and migration on ruralhouseholds’ technical efficiency of crop production using a five-year panel dataset frommore than 2,000 households in five Chinese provinces. While there is not much debateabout the positive contribution of migration and local off-farm employment to China’seconomy, there is an increasing concern about the potential negative effects of movinglabor away from agriculture on China’s future food security. This is a critical issue asmaintaining self-sufficiency in grain production will be critical for China to feed itshuge population in the future. Several papers have studied the impact of migration onproduction and yield with mixed results. But the impact of migration on technicalefficiency is rarely studied. Methodologically, we incorporate the correlated randomeffectsapproach into the standard stochastic production frontier model to control forunobservable that are correlated with migration and off-farm employment decisions andtechnical efficiency. The most consistent result that emerged from our econometricanalysis is that neither migration nor local off-farm employment has a negative effect onthe technical efficiency of grain production, which does not support the widespreadnotion that vast-scale labor migration could negatively affect China’s future food security.

Keywords: migration ; local off-farm ; agriculture ; efficiency ; China

Subject(s): Community/Rural/Urban Development

Food Security and Poverty

Productivity Analysis

Issue Date: 2014-07

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/177591

Total Pages: 30

JEL Codes: D24; O12; O13

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota

Autor: Yang, Jin ; Wang, Hui ; Jin, Songqing ; Chen, Kevin ; Riedinger, Jeffrey ; Peng, Chao

Fuente: http://ageconsearch.umn.edu/record/177591?ln=en

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