Forest tenure reform and the re-allocation of rural labor

Abstract

This paper investigates the impact of China’s second round of forest tenure reforms on rural household labor allocation and migration. Using panel data from 1,210 households across five provinces, we analyze household decisions regarding labor allocation to forestry, agriculture, and off-farm employment. Results show strong evidence that secure forest tenure increases household labor devoted to forestry and modestly encourages return migration, particularly during the 2008–09 financial crisis. Evidence for the safety net function of forests is mixed, with benefits concentrated among better educated households. These findings highlight both the opportunities and limitations of forest tenure reform in addressing rural underemployment, moderating migration pressures, and providing welfare support during economic stress. The study contributes to broader debates on tenure reform, rural development, and the socioeconomic role of forests in developing countries.