Can Grain Subsidies Impede Rural–urban Migration in Hinterland China? Evidence from Field Surveys
Lei Meng
China Economic Review 23 (2012), 729–741
#002171 20131014 (published)
In 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-Codes: J61, R23
Keywords: Migration, Agricultural subsidy, Rural China

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