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



Household                     Individual

(1) off-farm

(2) farm

(3) off-farm

(4) farm

poorest in asset value in 1999

0.681

-0.155

0.358

-0.117

(dummy) x treatment x year2004

(2.18)**

(0.48)

(2.54)**

(0.99)

second poorest in asset value in

1.244

-0.273

0.479

0.040

1999 (dummy) x treatment x year2004

(3.22)***

(0.68)

(2.92)***

(0.29)

second richest in asset value in

-0.020

0.041

0.275

1999 (dummy) x treatment x year2004

(0.06)

(0.11)

(1.69)*

richest in asset value in 1999

0.096

-0.425

0.065

-0.191

(dummy) x treatment x year2004

(0.27)

(1.17)

(0.43)

(1.35)

treatment

-0.126

-0.055

-0.041

0.022

(0.69)

(0.29)

(0.51)

(0.38)

year 2004 dummy

0.057

0.503

0.021

0.161

(0.30)

(2.56)**

(0.30)

(2.76)***

year 2004 * Yangtze basin

0.438

-0.311

0.177

-0.143

(2.39)**

(1.63)

(2.62)***

(2.03)**

household size

0.121

0.158

0.019

0.017

(2.40)**

(2.88)***

(0.92)

(0.96)

total land holdings

-0.001

0.009

0.001

0.008

(0.10)

(1.20)

(0.37)

(2.47)**

household members with off-farm

0.547

0.767

work in 1999

(6.34)***

(12.88)***

household members working

0.755

0.753

on-farm in 1999

(11.05)***

(13.93)***

Constant

-0.144

-0.198

(0.53)

(0.68)

Observations

130

130

453

453

R-square

0.41

0.62

58


Appendix Table 2. Program impact on off-farm and farm jobs, treatment indicator
interacted with quartile dummies of asset holdings using participating households that
changed status from nonparticipating to participating between 2002 and 2004.


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

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



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