This book deals with the off-farm labor supply of Chinese
agricultural households. The first objective explores the
relationship between the farm operators' off-farm labor supply and
the household's farming efficiency. The theoretical model predicts
an inverse relationship between farming efficiency and off-farm
labor supply. However, the empirical results show that the
agricultural production technical efficiency exhibits no
significant effect on off-farm labor supply. There appears to be a
surplus of labor in the agrarian sector in China. Restrictions on
the movement of labor among regions and in the reallocation of
farmland serve to maintain this surplus and thus bring about
economic inefficiencies. The second objective investigates the
switching nature of the operator's off-farm labor supply depending
on the spouse's participation status in off-farm labor markets. The
off-farm labor supply behavior of operators with spouses working
off-farm exhibits some differences from that of the operators with
spouses' not working off-farm. The results support that the
agricultural household is a more relevant decision unit for
resource allocation than is its individual members.
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