Effects of Off-Farm Work on Farm Household Production Choices
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Using a unique panel of rice-producing Chinese households, this paper tests off-farm employment’s effects on agricultural production. We find the sizable rural out-migration in the past two decades has had negligible effects on China’s rice production. This cannot be explained by farm labor market perfection or any technological improvements financed by off-farm income; rather, evidence points to the persistence of disguised unemployment in 21st century China.