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Dynamic Off-Farm Labor Participation Over Life-Cycle (Unpublished Manuscript)

Liao, Z. (2005). Dynamic Off-Farm Labor Participation Over Life-Cycle (Unpublished Manuscript). . China Center for Economic Research: Beijing University.

Liao, Z. (2005). Dynamic Off-Farm Labor Participation Over Life-Cycle (Unpublished Manuscript). . China Center for Economic Research: Beijing University.

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This paper analyzes the intertemporary off-farm labor participation behavior of farmer in rural China. We estimate a dynamic probit model, using longitudinal data to allow for a rich dynamic structure. The sensitivity to alternative distributional assumptions is evaluated using linear probability model and probit model. The Maximum Simulated Likelihood (MSL) estimation is used to overcome the computational difficulty in maximum likelihood estimation of models with nontrivial error structure. The study finds that the off-farm labor participation decisions are characterized by significant stat dependence and unobserved heterogeneity. Those better educated young men with less non-labor income, less young children and high rate of community level participation are more likely to participate in the off-farm labor force.




RPRT



Liao, Z.



2005









China Center for Economic Research: Beijing University






1216