The Impact of Location of Labor Migration on Rural Households’ Income: Evidence from Jiangxi Province in China

Abstract

With the increasing occurrence of labor migration (LM), off-farm employment has emerged as a crucial means to augment the income of agricultural households, bridge the urban-rural divide, and achieve rural regeneration. This study utilized a multiple linear regression model and quantile regression model to examine the effect of LM location on rural households’ income. The analysis is based on research data from Jiangxi Province in 2018. The outcomes reveal that both intra-country LM and outside-of-county LM could make a substantial contribution to the increase of overall household income. However, the coefficient of impact for outside-of-county LM is greater. The findings of this study successfully passed the rigorous tests for robustness and endogeneity. Furthermore, the quantile regression analysis indicates that the greatest income-generating impact of intra-county LM occurred at the 90% quantile, whereas the highest income-generating impact of outside-of-county LM appeared at the 75% quantile. The study aims to determine if there is a variation in the income impact of LM in samples with distinct features. Specifically, it investigated the scale of forestland management and the LM of the household head. The results show that the promotion effect of intra-county LM on the total income of rural households was only observed in the sample group with a forestland area larger than 50 mu. Additionally, outside-of-county LM could only promote the growth of the total income of rural households in the sample group in which the head of household has not experienced labor migration. Hence, to enhance the growth of income for rural households amidst China’s urbanization, policymakers should facilitate the controlled migration of labor from rural areas to urban areas while also encouraging the migration of labor within rural areas.