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Aging of the labor force and technical efficiency in crop production

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  • Min Li
  • Terry Sicular

Abstract

Purpose - The purpose of this paper is to analyze the extent of aging in the agricultural labor force and its effect on farm production in a province of China. Design/methodology/approach - The analysis uses panel data for the years 2004 through 2008 from a representative sample of farm households in Liaoning province. Descriptive statistics reveal the age structure of the agricultural labor force and correlations between labor force age and production characteristics. A translog stochastic frontier production function and technical inefficiency model is employed to analyze the effect of aging of the labor force on the technical efficiency of crop production. Findings - The paper finds an accelerating trend towards aging of the agricultural labor force in the data. Results from the stochastic frontier production function and efficiency analysis reveal that household‐level technical efficiency increases until maximum efficiency is reached when the average age of the household labor force is 45, after which efficiency declines. Practical implications - Aging of China's rural labor force may affect efficiency and productivity in crop production. Agricultural policies may need to pay more attention to the aging of the agricultural labor force. Some measures should be taken to address the pattern of migration, and policies to improve the social and economic environment in rural areas for younger workers should be developed. Also, extension programs could help older farmers to maintain efficient farming methods. Originality/value - This is one of very few analyses of the effects of aging on production efficiency for a developing country, as well as for China. The analysis uses a unique panel dataset that covers 24 counties, 1,890 rural households, and more than 6,000 individuals, with each household tracked for five years. Most of the literature estimating technical efficiency carries out the analysis at the individual level; in China and other developing countries, farming is carried out at the household level. We have adapted the methodology to apply to situations where the unit of analysis is the household.

Suggested Citation

  • Min Li & Terry Sicular, 2013. "Aging of the labor force and technical efficiency in crop production," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 5(3), pages 342-359, August.
    • Handle: RePEc:eme:caerpp:v:5:y:2013:i:3:p:342-359
    DOI: 10.1108/CAER-01-2012-0001
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    Citations

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    Cited by:

    1. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    2. Jian Liu & Chao Zhang & Ruifa Hu & Xiaoke Zhu & Jinyang Cai, 2019. "Aging of Agricultural Labor Force and Technical Efficiency in Tea Production: Evidence from Meitan County, China," Sustainability, MDPI, vol. 11(22), pages 1-16, November.
    3. Seok, Jun Ho & Reed, Michael R. & Moon, Han-Pil, 2017. "Population Aging and Growth of Developed Countries’ Agricultural Sector: Focusing on the Inverse Relationship between Aging and Cognitive Abilities," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258573, Agricultural and Applied Economics Association.
    4. Tamer El-Shater & Amin Mugera & Yigezu A. Yigezu, 2020. "Implications of Adoption of Zero Tillage (ZT) on Productive Efficiency and Production Risk of Wheat Production," Sustainability, MDPI, vol. 12(9), pages 1-13, May.
    5. Zhang, Yihao & Wu, Ya & Yan, Jianzhong & Peng, Ting, 2022. "How does rural labor migration affect crop diversification for adapting to climate change in the Hehuang Valley, Tibetan Plateau?," Land Use Policy, Elsevier, vol. 113(C).
    6. Zhihai Yang & Amin W. Mugera & Ning Yin & Yumeng Wang, 2018. "Soil conservation practices and production efficiency of smallholder farms in Central China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1517-1533, August.
    7. Jun Ho Seok & Hanpil Moon & GwanSeon Kim & Michael R. Reed, 2018. "Is Aging the Important Factor for Sustainable Agricultural Development in Korea? Evidence from the Relationship between Aging and Farm Technical Efficiency," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    8. Yangqi Fu & Yuchun Zhu, 2023. "Internet use and technical efficiency of grain production in China: a bias-corrected stochastic frontier model," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    9. Fujia Sui & Yinsheng Yang & Shizhen Zhao, 2021. "What Affects the Production Technology of Labor-Intensive Agricultural Industries in the Context of Labor Aging? An Empirical Study Based on the Garlic Production in Lanling," Sustainability, MDPI, vol. 14(1), pages 1-16, December.
    10. Jara-Rojas, Roberto & Bravo-Ureta, Boris & Solis, Daniel & Martinez, Daniela, 2016. "Production efficiency and commercialization channels among small-scale farmers: Evidence for raspberry production in Central Chile," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229330, Southern Agricultural Economics Association.
    11. Danyang Li & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2024. "Impact of rural households' digital ability on their production efficiency in China," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 139-160, January.
    12. Liao, Liuwen & Long, Hualou & Gao, Xiaolu & Ma, Enpu, 2019. "Effects of land use transitions and rural aging on agricultural production in China’s farming area: A perspective from changing labor employing quantity in the planting industry," Land Use Policy, Elsevier, vol. 88(C).
    13. Lu, Qinan & Du, Xiaodong, 2020. "The Outsourcing Choice of Agricultural Production Tasks: Implications for Food Security - A Multiple-task Based Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304333, Agricultural and Applied Economics Association.
    14. Zhihai Yang & Amin W. Mugera & Fan Zhang, 2016. "Investigating Yield Variability and Inefficiency in Rice Production: A Case Study in Central China," Sustainability, MDPI, vol. 8(8), pages 1-11, August.
    15. Yu, Peiheng & Fennell, Shailaja & Chen, Yiyun & Liu, Hui & Xu, Lu & Pan, Jiawei & Bai, Shaoyun & Gu, Shixiang, 2022. "Positive impacts of farmland fragmentation on agricultural production efficiency in Qilu Lake watershed: Implications for appropriate scale management," Land Use Policy, Elsevier, vol. 117(C).
    16. Jara-Rojas, Roberto & Bravo-Ureta, Boris E. & Solis, Daniel & Arriagada, Daniela Martinez, 2017. "Technical Efficiency and Marketing Channels Among Small-Scale Farmers: Evidence for Raspberry Production in Chile," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(3), November.
    17. Yang Cheng & Yuxia Lv & Mark Rosenberg & Linke Hou, 2018. "Decision Making of Non-Agricultural Work by Rural Residents in Weifang, China," Sustainability, MDPI, vol. 10(5), pages 1-15, May.

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