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



42

Table 5. Impact of Grain for Green on individual off-farm labor decisions for 1999 and
2004.

Dependent Variable: 1=Off-farm work, 0=No off-farm work

(1)

(2)

(3)

(4)

(5)

(6)

treatment x year2004

0.148

(2.04)**

program area x

0.002

year2004

(1.48)

ratio of program area to

0.086

total land holdings x

(2.19)**

year2004

number of years in

0.010

program x year2004

(0.98)

program area x number

0.000

of years in program x

(1.52)

year2004

ratio of program area to

0.015

total land x number of

(2.32)**

years in program x

year2004

year 2004

0.066

0.170

0.150

0.152

0.172

0.153

dummy

(0.98)

(5.39)***

(4.39)***

(3.03)***

(5.62)***

(4.72)***

year 2004 x Yangtze

0.043

0.049

0.053

0.038

0.049

0.052

basin

(1.09)

(1.20)

(1.27)

(0.95)

(1.19)

(1.27)

household size

0.013

0.012

0.013

0.012

0.012

0.012

(1.89)*

(1.70)*

(1.79)*

(1.84)*

(1.68)*

(1.73)*

total land holdings

-0.001

-0.002

-0.002

-0.001

-0.002

-0.002

(0.60)

(1.40)

(1.34)

(0.76)

(1.41)

(1.42)

individual had off-farm

0.743

0.743

0.745

0.742

0.744

0.745

work in 1999 (1,0)

(25.03)***

(25.32)***

(25.48)***

(25.11)***

(25.34)***

(25.51)***

Observations

1,955

1,955

1,955

1,955

1,955

1,955

Robust z-statistics in parentheses

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



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