Access to Piped Water and Off-Farm Work Participation: Evidence from Rural China

Abstract

The lack of access to water services for a considerable share of the world population has been challenging the international community for decades. Billions of hours are spent each year on water collection in developing countries. Access to piped water can liberate individuals from the task of collecting water. Based on data from the China Labor-force Dynamic Survey (CLDS), this paper examines the impact of access to piped water on off-farm work participation. We find that access to piped water significantly improves off-farm work participation in rural China. This result remains robust when we use the PSM approach, Lewbel IV method, placebo test, and Dose-Response Model. Anyway, we find that the positive effect of access to piped water on off-farm work participation is greater in rugged areas and women, reflecting the role of access to piped water in promoting inclusive growth. Further research shows that access to piped water increases household income, and off-farm work participation mediates, in part, the link between access to piped water and household income.