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



41

Table 4. Impact of Grain for Green on household decisions on farm labor for 1999 and
2004.

Dependent Variable:
number of household members working on-farm

(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

-0.430

(2.10)**

-0.002

(0.35)

-0.152

(1.26)

-0.023

(0.83)

-0.001

(0.69)

-0.031

(1.51)

treatment

-0.007

-0.216

-0.192

-0.170

-0.214

-0.192

(0.05)

(2.06)**

(1.80)*

(1.42)

(2.04)**

(1.82)*

year 2004 dummy

0.479

0.118

0.173

0.194

0.130

0.176

(2.45)**

(1.30)

(1.79)*

(1.43)

(1.47)

(1.90)*

year 2004 x Yangtze basin

-0.178

-0.163

-0.180

-0.160

-0.170

-0.183

(1.60)

(1.42)

(1.59)

(1.44)

(1.50)

(1.63)

household size

0.090

0.090

0.089

0.091

0.091

0.089

(3.73)***

(3.74)***

(3.68)***

(3.75)***

(3.76)***

(3.70)***

total land holdings

0.000

0.001

0.002

0.001

0.002

0.002

(0.08)

(0.22)

(0.38)

(0.16)

(0.35)

(0.45)

household members

0.682

0.681

0.681

0.682

0.681

0.682

Constant

0.384

0.554

0.533

0.518

0.544

0.528

(2.24)**

(3.66)***

(3.55)***

(3.27)***

(3.59)***

(3.52)***

Observations

534

534

534

534

534

534

R-square

0.55

0.55

0.55

0.55

0.55

0.55

Absolute value of t-statistics in parentheses.

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



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