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This study estimates a modified disequilibrium model to ascertain the relative importance of reasons why household heads in rural China do not work more in the market. Household heads in the Central and Western regions do not so because they have fewer young children, live with their grown-up children or must help their family members with economic crops or livestock production. Household heads in the Eastern region do not work extra because nearly 40% of them are constrained in the labor market. This constraint seems to come from traditional economic structure which demands more temporary workers than permanent ones.
The Singapore Economic Review – World Scientific Publishing Company
Published: Mar 1, 2014
Keywords: Modified disequilibrium model household head labor supply Chinese farm households work hours constraints JEL Classification: Q12 JEL Classification: J22
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