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



44

Table 7. Program impact on off-farm and farm jobs, treatment indicator interacted with
quartile dummies of asset holdings, 1999 and 2004.

Household

Individual

(1 ) off-farm

(2) farm

(3) off-farm

(4) farm

poorest in asset value in 1999

0.515

-0.431

0.198

-0.164

(dummy) x treatment x year2004

(2.54)**

(1.93)*

(2.49)**

(1.97)**

second poorest in asset value in 1999

0.331

-0.341

0.197

-0.082

(dummy) x treatment x year2004

(1.64)

(1.54)

(2.49)**

(1.03)

second richest in asset value in 1999

0.197

-0.521

0.115

-0.115

(dummy) x treatment x year2004

(0.96)

(2.32)**

(1.50)

(1.39)

Richest in asset value in 1999

0.091

-0.399

0.105

-0.161

(dummy) x treatment x year2004

(0.45)

(1.79)*

(1.39)

(1.93)*

treatment

-0.107

-0.003

-0.041

0.012

(0.82)

(0.02)

(0.78)

(0.23)

year 2004 dummy

0.163

0.492

0.062

0.106

(0.93)

(2.55)**

(1.04)

(1.62)

year 2004 * Yangtze basin

0.156

-0.205

0.052

-0.048

(1.55)

(1.86)*

(1.66)*

(1.32)

household size

0.109

0.097

0.011

-0.013

(5.34)***

(4.03)***

(1.77)*

(2.03)**

total land holdings

-0.000

-0.000

-0.000

-0.000

(0.02)

(0.09)

(0.39)

(0.40)

household members with off-farm

0.608

0.746

work in 1999

(14.36)***

(25.89)***

household members working on-farm

0.687

0.730

in 1999

(20.84)***

(29.00)***

Constant

-0.142

0.343

(0.93)

(2.01)**

Observations

528

528

1,928

1,930

R-square

0.41

0.56

Absolute value of t-statistics in parentheses in models (1) and (2); z-statistics in (3) and (4).

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

Notes: In models (1) and (2), the dependent variables are the number of household members with (1)
off-farm work or (2) farm work. In models (3) and (4), the dependent variables are 1 = individual has (3)
off-farm work or (4) farm work and 0 = not. Columns (3) and (4) report the marginal effects of a probit
model and the standard errors are clustered at the household level.



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