The Dynamics of Chinese Rural Households' Participation in Labor Markets

The work focuses on the frequency of each possible transition between labor market participation regimes of rural Chinese households. A continuous hazard approach is applied to empirically evaluate factors, as household, farm, and regional characteristics affecting the frequency of transition between labor market participation states. Results suggest that there are frequent changes of labor market participations regimes among the househo lds. Given the change in external conditions and other factor end owments this might indicate that households quickly response in allocating labor in order to equilibrate the resources. Further, we find that there are good chances climbing out of autarky; however the probability to fall in autarky was also remarkable over time