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Can Grain Subsidies Impede Rural–urban Migration in Hinterland China? Evidence from Field Surveys

id: 2171 Date: 20131014 status: published Times:
Magazines   23 (2012), 729–741
AuthorLei Meng
ContentIn this paper I examine if China's grain subsidy program keeps farmers from engaging in migratory work using self-collected panel rural household survey data from Zhijiang, Hubei province. Making use of Zhijiang's unique geographical features, I construct a treatment and a control group and use a difference-in-differences methodology to identify the subsidy effect on migration. My results suggest that the grain subsidy policy does keep farmers at the rural origin.
JEL-CodesJ61, R23
KeywordsMigration, Agricultural subsidy, Rural China
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