THE RISE OF RURAL-TO-RURAL LABOR MARKETS IN CHINA

The Rise of Rural-to-Rural Labor Markets in China

Abstract

The continued transfer of agricultural labor into the industrial sector is crucial to
China’s transformation into an industrial economy. We argue in this paper that rural
industry offers an alternative to urban industry for receiving agricultural labor from areas
without off-farm employment opportunities. Characteristics of rural industry differ from
their urban counterparts. These characteristics may serve to shape the growth in
employment for incoming workers in rural areas, provide opportunities for certain types
of workers, and affect the impacts these workers have on the local economy.

In this paper we examine the features of China’s rural-to-rural labor movement
and the villages where these workers are employed. Using a nationally representative
sample of 215 villages, we show that the growth in rural-to-rural labor movement
between 1988 and 1995 has been much faster than in rural-to-urban movement or in local
off-farm employment. The rapid growth in rural-to-rural commuting and migration has
not negatively affected off-farm income earning opportunities for workers living in the
receiving villages. Rural-to-rural labor movement also has many positive effects. Labor
movement into rural villages provides opportunities for workers generally
underrepresented in other parts of the off-farm labor market, appears to dampen upward
pressure on wages that allows rural industry to maintain labor intensive practices, and
promotes national economic integration.

<<   1   2   3   4   5   6   >>

More intriguing information