Summary/Abstract |
As the population bonus disappeared, the wage rate has increased significantly since the early 2000s in China. Increasing wages have significantly affected export-oriented industries as well as agriculture. Mechanization is another factor affecting China's agriculture. This study shows the increasing wage and the mechanization have a negative impact on land area devoted to labor-intensive crops but a positive impact on land area devoted to labor-extensive crops. Based on nationally representative data, the empirical results conform well to the theoretical predictions.
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