Original scientific paper
https://doi.org/10.1080/1331677X.2021.1985573
Does a higher minimum wage accelerate labour division in agricultural production? Evidence from the main riceplanting area in China
Lili Guo
Xiaoyu Duan
Houjian Li
Wanjiang Yang
Yanjun Ren
Yangli Guo
Abstract
Agricultural production outsourcing, a new means of agricultural
production, can optimise the allocation of resources, reduce agricultural production costs, and improve agricultural productivity.
However, farmers’ outsourcing behaviours are strongly interfered
with by many factors such as economics, technology and institutions. Using a farmer-level data set from 2014 to 2018 in China,
we examine the effects of the minimum wage increase on rice
farmers’ production outsourcing behaviours. Our study relies on a
Logit regression framework and uses the control function (C.F.)
approach to address potential endogeneity concerns. Results
show that the minimum wage increase significantly reduces the
probability of farmers conducting production outsourcing. We
also examine the heterogeneous effects of the minimum wage
increase, and find that compared with other outsourcing services,
the adverse effects on harvesting outsourcing are the strongest;
the negative effects on production outsourcing are stronger for
rice farmers with higher education. Our results provide new
insights into understanding how labour regulation affects labour
division in agricultural production.
Keywords
production outsourcing; minimum wage; control function (C.F.) approach; China
Hrčak ID:
302494
URI
Publication date:
31.3.2023.
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