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



Dependent Variable: 1=Individual work on-farm, 0=does not work 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

-0.125

(1.55)

0.001

(0.51)

0.015

(0.28)

-0.007

(0.49)

0.000

(0.19)

0.001

(0.06)

treatment

0.008

-0.058

-0.059

-0.042

-0.057

-0.057

(0.34)

(1.63)

(1.65)*

(1.05)

(1.60)

(1.59)

year 2004 dummy

0.105

-0.013

-0.010

0.024

-0.006

-0.004

(1.37)

(0.34)

(0.24)

(0.40)

(0.16)

(0.10)

year 2004 x

-0.046

-0.031

-0.035

-0.040

-0.036

-0.037

Yangtze basin

(0.80)

(0.54)

(0.61)

(0.71)

(0.62)

(0.66)

household size

-0.015

-0.015

-0.015

-0.015

-0.015

-0.015

(2.02)**

(2.04)**

(2.02)**

(2.01)**

(2.03)**

(2.03)**

total land holdings

-0.000

-0.000

-0.000

0.000

-0.000

-0.000

(0.04)

(0.34)

(0.13)

(0.05)

(0.13)

(0.04)

individual worked

0.728

0.728

0.727

0.727

0.727

0.727

on farm in 1999

(28.20)***

(28.59)***

(28.63)***

(28.32)***

(28.51)***

(28.56)***

Observations

1,957

1,957

1,957

1,957

1,957

1,957

Robust z-statistics in parentheses

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

43


Table 6. Impact of Grain for Green on individual farm labor decisions for 1999 and 2004.


Note: The reported coefficients are marginal effects of a probit model. Robust z-statistics are calculated
based on the clustered standard error at the household level
.




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