Moving off the farm and intensifying agricultural production in Shandong: a case study of rural labor market linkages in China

Abstract This study examines linkages between off‐farm labor markets and the labor allocated by farmers to on‐farm production of fruit crops. Using a stratified random sample of rural households in Shandong Province, we find that young and educated members of the labor force tend to work more frequently in the off‐farm labor market, and that off‐farm employment reduces the likelihood and intensity of fruit production. Fruit production is associated with lower levels of off‐farm employment. Households and individuals who are less likely (or able) to find off‐farm employment can benefit from shifting into fruit production. Although off‐farm employment is an important avenue out of poverty, fruit production provides ways for the less educated and older households to raise their income.