Study On The Impact Of Non-farm Employment On Household Durable Goods Consumption In Rural China

With the development of industrialization and urbanization in China,farmers no longer have to rely on the land to survive.Many rural labor force seek jobs in non-agricultural sectors,and the employment of rural residents is becoming more and more diversified.However,The wage level of non-agricultural sector is usually higher than that of agricultural sector,so rural residents can get higher income by participating in non-agricultural employment,which in turn affects consumption.According to the Opinions on Improving the System and Mechanism of Promoting Consumption to Further Stimulate the Consumption Potential of Residents issued by the CPC Central Committee,"Consumption is the final demand,the ultimate goal and driving force of production,and also the direct embodiment of people’s needs for a better life." However,the consumption of durable goods accounts for a large proportion of household consumption,which can directly reflect the consumption level of a household.Therefore,it is necessary to separate durable goods for research.Although many scholars have studied the impact of non-farm employment on consumption in the previous literature,there is no study on the impact of non-farm employment on consumption of durable goods,and there is no distinction between rural and urban areas.However,due to the differences in income levels and consumption environment between urban and rural areas,there is a big gap in durable goods consumption.Therefore,it is of great significance to study the impact of non-agricultural employment on rural household durable goods consumption for how to formulate policies to narrow the consumption gap between urban and rural residents and stimulate the consumption of durable goods in rural areas.Based on this,this paper used propensity score matching method(PSM)and durable goods stock adjustment model to study the impact of non-farm employment on household durable goods consumption in rural China.Through the analysis of China’s non-agricultural employment and the current situation of rural household durable goods,it is found that: from the perspective of the total number of employment,the total number of migrant workers in China has continued to increase in the past decade;From the perspective of industrial structure,the proportion of people employed in the primary industry in the national employment population has been declining;From the perspective of the structure of migrant workers,both the total amount and the growth rate of migrant workers are higher than those of local migrant workers.In terms of consumption of durable goods,although the per capita consumption expenditure of rural residents continues to grow,the per capita increment of consumption of durable goods and its proportion in consumption expenditure are still small.The consumption structure of household durable goods in rural areas is not reasonable.Then,this paper analyzes the influence mechanism of non-farm employment on household durable goods consumption,showing that non-farm employment will affect rural household durable goods consumption through the income-increasing effect and the expected effect.Then,this paper uses propensity matching score method(PSM)to match the cross-sectional data of China Household Tracking Survey(CFPS)in 2018 to effectively eliminate the selective bias of off-farm employment and analyze the average processing effect of off-farm employment on rural household durable goods consumption.To confirm that non-farm employment does have an impact on household durable goods consumption,we can select non-farm employment from many factors that affect durable goods consumption for further study.Finally,this paper uses the adjustment model of durable goods stock to conduct an empirical study on the consumption expenditure and structure of rural household durable goods with propensity matched samples,and analyzes the difference of the impact of off-farm employment on different regions and different household incomes.The following conclusions can be drawn from the research of this paper: First,the non-agricultural employment of the labor force in rural areas in China is developing continuously,and more than half of the families on average will participate in the non-agricultural employment.Second,the consumption of household durable goods in rural China has developed greatly,but the consumption structure still needs to be further optimized.Third,non-farm employment will promote durable goods consumption through income increase effect and expected effect,and non-farm employment has a greater impact on transportation and communication durable goods consumption expenditure.Fourth,the effect of migrant work on household durable goods consumption is greater than that of non-farm operation.Fifth,the impact of non-farm employment on household durable goods consumption is heterogeneous across different regions and income levels.The non-agricultural employment has the greatest promoting effect on the rural durable goods consumption in the central region,and the least promoting effect in the western region.It has a significant effect on the consumption of durable goods of low-income families,but has no significant effect on middle and high income families.Based on the above research conclusions,the following policy recommendations are put forward.First,expand the channels of non-agricultural employment for rural residents.Second,we will improve the non-agricultural employment capacity of rural residents.Third,we will improve protection of the labor rights and interests of non-agricultural employees.Fourth,implement the policy of regionalization and tilt toward the central and western regions.Fifth,speed up the construction of a new countryside and raise the income level of rural residents.