The Rural Labor Transfer with Respect to the Development of Farmland Leasing Market: Evidence from Rural China

Since relaxing policy control for farmland leasing, rural labor transfer also arises. The paper estimates the relationship between farmland leasing market and rural labor transfer based on a Double Hurdle Model with the survey data collected from 2793 households in rural China. Results show that the farmland leasing-in scale restrains rural labor transfer mainly in the full-time movement by stimulating the behavior of farmers to plant rice, whereas farmland leasing-out scale, compared to farmland leasing-in scale has an opposite effect on labor transfer, and performs this effect by increasing the likelihood of the desired degree for rural households to do urban business. Specifically, we also find the underlying channels such as the farmers’ desire to the agricultural investment and the Dipiao-ticket transaction through which farmland leasing-in or -out scale affects labor transfer separately. We further find a negative effect of farmland leasing-in scale on household savings and a positive effect of farmland leasing-out scale on that mainly evidently in the group of rural labor transfer. Moreover, farmland leasing-out scale has no significantly influence on the urban life worry of farmers, does not let farmers worry about their urban housing, and does worry about their children’s education. Our study has a deep policy implication on social planners in China to strengthen the systems of the farmland leasing and rural labor transfer.