This chapter examines how peasant households in China allocate their labour among migration, rural industry, and farming. It is shown that the average and marginal returns to rural labour differ greatly among activities, with returns in non-farm activities exceeding those of farming. Incentives to seek non-farm employment are powerful. These will increase if the inequalities between rural and urban China, or within rural China continue to grow.
Keywords: China; rural workers; households; labour allocation; marginal returns; farming; non-farm activities
Chapter. 13268 words.
Subjects: Business and Management
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