The Influence of Land Rental Market on Non-farm Employment: Evidences from Zhejiang, Hubei, Shaanxi Province

Abstract

Using the first-hand survey data from Zhejiang, Hubei and Shaanxi in 2011, this study tries to measure the degree of the development of the rural land rental market comprehensively, from both the ``quality{''} and the ``quantity{''} aspects. At the same time, it will analyze how the rural land rental market of the village affects the non-farm employment decisions of the rural labors. The empirical results show that both the ``quality{''} and ``quantity{''} of the rural land market have a significant impact on the non-farm employment decisions of the rural labors. The mature rural land rental market with stable contracts can promote the non-farm employment of the rural labors. Furthermore, the short-term land rental contract has no significant effect on the rural labors' non-farm employment; the long-term land rental contract has a significant effect on the rural labors' non-farm employment. From the public policy perspective, only the public policies aiming to promote the farmers to sign a long-term rental contract can increase the rural labors' non-farm employment effectively.