Village Political Economy, Land Tenure Insecurity and the Rural to Urban Migration Decision: Evidence from China
Author : Ren Mu, John Giles | 2012
Published By: EPC
This paper investigates the impact of land tenure insecurity on farmers’ labor migration decisions in rural China. Crucial for our identification is that the heterogeneity of patrilineal clans within a village is associated with the cost of reallocating land. We show that the probability of a village-wide reallocation is a function of exogenously determined election timing interacted with the share of households in a village belonging to the largest lineage group in the first year of a panel survey. This interaction is used to identify the effect of land tenure insecurity on migration decisions. We find that in response to a higher probability of village-wide land reallocation, farmers reduce their migration probability by 2.1%, which accounts for 14% of the annual migration rate during this period. This finding attests to the importance of secure property rights in facilitating labor market integration and urbanization in general.
URL : http://epc2012.princeton.edu/papers/120946