Using rural household-level panel data, we first investigate the relationship between rural aging and farm operations. We find that aging negatively correlated with farm inputs, particularly farm size, leading to a decline in labour productivity. We then underscore the importance of land markets in mitigating the effect of rural aging by facilitating elderly farmers to exit from farming and reallocating land to high-productive younger farmers.
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Wang et al. (2024) studied this question.
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