The Influence of Land Rental Market on Non-farm Employment: Evidences from Zhejiang, Hubei, Shaanxi Province

Abstract

Using the first-hand survey data from Zhejiang, Hubei and Shaanxi in 2011, this study tries to measure the degree of the development of the rural land rental market comprehensively, from both the “quality” and the “quantity” aspects. At the same time, it will analyze how the rural land rental market of the village affects the non-farm employment decisions of the rural labors. The empirical results show that both the “quality” and “quantity” of the rural land market have a significant impact on the non-farm employment decisions of the rural labors. The mature rural land rental market with stable contracts can promote the non-farm employment of the rural labors. Furthermore, the short-term land rental contract has no significant effect on the rural labors’ non-farm employment; the long-term land rental contract has a significant effect on the rural labors’ non-farm employment. From the public policy perspective, only the public policies aiming to promote the farmers to sign a long-term rental contract can increase the rural labors’ non-farm employment effectively.

Keywords

• land rental market
• non-farm employment
• the stability of land tenure