Migration and Local Off-farm Working in Rural China
نویسندگان
چکیده
The paper analyzes the decision-making of rural Chinese households on whether to stay exclusively on farm, take local off-farm jobs or migrate. Based on a survey of rural Chinese households, we examined the determinants of job location choice of rural China. We extend the dynamic discrete choice model of Wooldridge (2002a,b) to the three-alternative setting and apply it to a five-year panel. We conclude that education and social networks play important roles in transforming rural China after controlling for the effect of previous decision. We find statistically significant state dependence between the current period response and the decision of the previous time period.
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