An Empirical Study On The Influence Of Credit On The Decision-making Of Rural Labor

Based on the 2014 household micro-data of the China Family Tracking Survey(CFPS),this paper empirically tests the impact of credit on rural labor decision-making using the Probit model,and identifies the heterogeneous impact of formal and informal credit channels on farmer decision-making.Using different credit indicators and subdividing the eastern,central and western samples according to regional differences,the relationship between credit and farmer decision-making was tested for robustness.Using the average formal credit level of the community and the average informal credit level of the community as an instrumental variable of credit mitigates the endogeneity of variables caused by reverse causality.In addition,this paper also analyzes the internal mechanism of credit affecting farmers' work by analyzing the relationship between credit and entrepreneurship and skills training.The result shows that:(1)Formal credit support does not promote the entry of rural labor into urban employment.It is conducive to the local production and employment of rural labor,and effectively convert it into local production capacity.This shows that the lack of access to formal credit is one of the reasons for the labor to go out to work.Farmers are more willing to stay in the local area to obtain employment after receiving credit.The support of informal credit has cemented the motivation of rural labor to stay in cities.This may be because informal credit mainly plays a role of implicit guarantee or emergency in family decision-making,rather than saving the poor.(2)There are differences in the impact of formal credit on the decision-making behaviors of different age groups.Formal credit has the most significant negative impact on the choice of migrant workers from 31 to 40 years old;the impact on the 16 to 30-year-old sample is second;the impact on the 41 to 65-year-old sample is not significant.Relieving the credit constraints of young farmers will help improve their local employment and production capacity and reflect important support for the rural revitalization strategy.(3)The level of education also has a significant negative impact on migrant workers in rural areas.The rural labor force is more likely to be passive and passive.Instead of using the foot to vote after the promotion of the endowment ability,local employment and entrepreneurship are still The primary choice for farmers with certain self-development capabilities.(4)Formal credit support has a significant positive impact on the skills training of young farmers.Formal credit can enhance the local employment competitiveness by improving the self-development ability of local labor factors,and positively affect the local employment decision of rural labor.In addition,formal credit can also convert formal credit into local production capacity by improving the factor input capacity of farmers' production and operation investment.Improving the availability of formal credit,especially increasing credit support for young farmers,will help to form local production capacity and is a powerful guarantee for the implementation of the rural revitalization strategy.