Effects of Labor Price Hike and Population Ageing on Rural Land * Lease in China

Yang Jin (杨进) and Chen Zhigang (陈志钢)  
School of Economics, Huazhong University of Science and Technology (HUST), Wuhan, China  
International Food Policy Research Institute (IFPRI), Beijing, China  
Abstract: In answering the questions as whether China’s rising labor price and ageing  
workforce have affected rural land leasing and whether these factors have any joint effect,  
we have employed RCRE data of the Ministry of Agriculture to carry out an empirical  
analysis and the result indicates that labor price hike has significant positive effects on both  
the land lease-in and lease-out of rural households, i.e. labor price hike will help increase  
the land leasing of rural households. At the level of ageing workforce, our empirical results  
indicate that ageing workforce does not create any significant impact on rural land leasing  
market no matter for land lease-in or lease-out in overall samples, plain regions and  
mountainous regions. In our empirical analysis on whether ageing workforce will intensify  
or weaken the effects of labor price hike on rural land leasing market, the regression result  
also indicates that there is no significant effect from a statistical perspective.  
Keywords: labor price, ageing, land leasing  
JEL Classification Code: J31, P23, Q15  
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