Sustainable Development of the Rural Labor Market in China from the Perspective of Occupation Structure Transformation

Abstract

This study analyzes the structural transformations of the occupations of all off-farm rural laborers in China over the period 2007–2022. The changes in the rural labor market are mainly reflected in the decrease in the share of routine manual laborers from 66.59 percent to 52.77 percent, and the increases in the shares of non-routine cognitive and non-working laborers by 4.48 and 10.73 percentage points from 2007 to 2022, respectively. By adopting decomposition analysis, which improves the definition of occupational classification based on information on sub-sectors in industries and job contents using a dataset with a nationally representative sample covering 2000 rural households, the results show that both composition effect and propensity effect play important roles in the decrease in routine manual occupations; the composition effect dominates the changes in the non-routine cognitive occupation category, while the propensity effect is the main driver of the increasing trend in the non-working group. The economic model further illustrates the results of decomposition analysis. These findings imply that the government should further improve education in rural areas and pay greater attention to female and low-education-attainment groups among rural laborers. This study provides a reference for policies aimed at promoting the sustainable development of the rural labor market.