Off-farm Employment, Remittance and the Welfare of Emigrating Communities: From the perspective of consumption structure

CAO Lijuan; HONG Wei

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Off-farm Employment, Remittance and the Welfare of Emigrating Communities: From the perspective of consumption structure

CAO Lijuan 1 #,HONG Wei 2 *

1.College of Economics and Management, Nanjing Agricultural University, Nanjing, 210095

2.College of Economics and Management, Nanjing Forestry University，Nanjing, 210037

*Correspondence author

#Submitted by

Subject:

Funding: Specialized Research Fund for the Doctoral Program of Higher Education （No.No.20120097120042 ）, Specialized Research Fund for the Doctoral Program of Higher Education （No.No.20123204120017 ）

Opened online:31 May 2016

Accepted by: none

Citation: CAO Lijuan,HONG Wei.Off-farm Employment, Remittance and the Welfare of Emigrating Communities: From the perspective of consumption structure[OL]. [31 May 2016] http://en.paper.edu.cn/en_releasepaper/content/4689912

The improvement of farmers' welfare could be explained as the optimization of the consumption structure. Theoretically, off-farm employment could improve the welfares of left-behind persons in emigrating communities through two channels: First, it enlarges the budget constraints of the left-behind by remittances from migrant workers; Second, there is a tendency of convergence between different consumption preferences in emigrating and immigrating communities. The "demonstration effect" of the modern consumption preference will optimize the consumption structure in emigrating communities. This paper uses Household survey data collected by the Research Centre for Rural Economy of the Chinese Ministry of Agriculture for the period from 1996-2010 in Sichuan and Anhui to test these hypotheses. Our preliminary results show that (1) off-farm employment does earn higher income for rural workers; (2) inter-region off-farm employment earns higher income than near-home off-farm employment; and (3) inter-region off-farm employment plays an important "demonstration role" that influences tastes and preferences of family members and other residents in the emigrating communities.

Keywords:Agricultural Economics; Off-farm employment; Rural welfare; Consumption structure

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