Conservation Payments, Liquidity Constraints and Off-Farm Labor: Impact of the Grain for Green Program on Rural Households in China



40

Table 3. Impact of Grain for Green on household decisions regarding off-farm labor for
1999 and 2004.

Dependent Variable: number of household members with off-farm work

(1)

(2)

(3)

(4)

(5)

(6)

treatment x year2004

program area x year2004

Ratio of program area to
total land holdings x
year2004

Number of years in program
x year2004

program area x number of
years in program x year2004
Ratio of program area to
total land x number of years
in program x year2004

0.307

(1.62)

0.010

(2.22)**

0.284

(2.55)**

0.040

(1.54)

0.002

(2.40)**

0.056

(2.93)***

Yangtze Dummy x year2004

0.121

0.159

0.152

0.115

0.158

0.155

(1.17)

(1.51)

(1.47)

(1.13)

(1.51)

(1.51)

treatment

-0.113

0.020

-0.011

-0.044

0.022

-0.008

(0.84)

(0.20)

(0.11)

(0.40)

(0.23)

(0.08)

year2004

0.180

0.357

0.317

0.293

0.360

0.317

(0.99)

(4.29)***

(3.58)***

(2.35)**

(4.44)***

(3.74)***

household size

0.125

0.123

0.126

0.124

0.123

0.125

(6.09)***

(6.03)***

(6.18)***

(6.05)***

(5.99)***

(6.14)***

total land holdings

-0.001

-0.005

-0.003

-0.002

-0.005

-0.004

(0.29)

(1.15)

(0.87)

(0.42)

(1.20)

(0.97)

household members with

0.589

0.596

0.599

0.588

0.597

0.601

off-farm work in 1999
(persons)

(13.62)***

(13.78)***

(13.85)***

(13.61)***

(13.81)***

(13.92)*

**

Constant

-0.192

-0.258

-0.265

-0.240

-0.255

-0.259

(1.23)

(1.88)*

(1.96)*

(1.67)*

(1.86)*

(1.92)*

Observations

534

534

534

534

534

534

R-square

0.39

0.39

0.39

0.39

0.39

0.40

Absolute value of t-statistics in parentheses.

* significant at 10 percent level; ** at 5 percent level; *** at 1 percent level



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