Behavioral Decision of Employment for Rural Labors: Evidence from Peasant Households in Central China

Chunchao Wang and Ying Li

Abstract

Based on the facts of the peasant household and its labors, this paper analyses rational behavior strategy of the peasants and studies the microeconomic impact factors on the peasant behavior of employment with a discrete choice model. According to Econometric analysis, conclusions has been derived as follows: Firstly, the peasants behavior of employment is consistent with their wills to raise their income; Secondly, the peasants allocate labor resource in their peasant household on comparative advantages; Thirdly, non-agricultural job opportunity is a vital channel to release recessive unemployment and achieve sufficient employment of rural labors; Finally, peasants in different areas show slightly different tendency on obtaining non-agricultural jobs.

Keywords: rural labors; impact factors; employment choice