Exploring the drivers of agricultural wages growth in China: A comprehensive framework utilizing input-output and structural decomposition methods

Abstract

This study explores the factors driving agricultural wages growth in China from 1981 to 2020. We propose a comprehensive framework that combines input-output analysis and structural decomposition analysis to investigate the drivers of agricultural wages growth from four perspectives: supply, demand, industrial linkages, and agricultural support policies. The findings indicate that changes in consumer demand, investment demand, and labor mobility play significant roles in driving the growth of agricultural wages in China. Additionally, agricultural support policies have contributed to an increase in agricultural wages to some extent. However, changes in industrial linkages negatively affect agricultural wages growth. A notable strength of this study lies in the methodology employed, which ensures a comprehensive and systematic analysis encompassing diverse factors rather than a restricted perspective.