Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262399 
Year of Publication: 
2022
Citation: 
[Journal:] Economic Research - Ekonomska Istraživanja [ISSN:] 1848-9664 [Volume:] 35 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] London [Year:] 2022 [Pages:] 2984-3010
Publisher: 
Taylor & Francis, London
Abstract: 
Agricultural production outsourcing, a new means of agricultural production, can optimise the allocation of resources, reduce agricultural production costs, and improve agricultural productivity. However, farmers' outsourcing behaviours are strongly interfered with by many factors such as economics, technology and institutions. Using a farmer-level data set from 2014 to 2018 in China, we examine the effects of the minimum wage increase on rice farmers' production outsourcing behaviours. Our study relies on a Logit regression framework and uses the control function (C.F.) approach to address potential endogeneity concerns. Results show that the minimum wage increase significantly reduces the probability of farmers conducting production outsourcing. We also examine the heterogeneous effects of the minimum wage increase, and find that compared with other outsourcing services, the adverse effects on harvesting outsourcing are the strongest; the negative effects on production outsourcing are stronger for rice farmers with higher education. Our results provide new insights into understanding how labour regulation affects labour division in agricultural production.
Subjects: 
production outsourcing
minimum wage
control function (C.F.) approach
China
JEL: 
D1
D2
D24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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