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Chronic Illness and Income Diversification in Rural China.

Wenmei Liao1, Jiawei Wang1, Ying Lin2

  • 1School of Economics and Management, Jiangxi Rural Revitalization Strategy Research Institute, Jiangxi Agricultural University, Nanchang 330045, China.

International Journal of Environmental Research and Public Health
|April 3, 2021
PubMed
Summary
This summary is machine-generated.

Rural farmers with chronic illness in China diversify into local off-farm jobs, not migration, to escape poverty. Their income gains from diversification are higher, showing diminishing marginal effects.

Keywords:
diversificationhealthlivelihood strategiesoff-farm

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Area of Science:

  • Agricultural Economics
  • Rural Development
  • Health Economics

Background:

  • Off-farm diversification is a key poverty alleviation strategy in developing countries.
  • Rural farmers with chronic illnesses face significant barriers to accessing these opportunities.
  • Understanding the impact of chronic illness on livelihood diversification is crucial for targeted interventions.

Purpose of the Study:

  • To investigate the causal effect of chronic illness on livelihood diversification strategies among rural Chinese farmers.
  • To analyze how chronic illness influences income generation from off-farm employment.
  • To compare diversification-income relationships between healthy and health-impaired farmers.

Main Methods:

  • Utilized instrumental variable regressions for causal inference.
  • Analyzed data from 3850 rural households in Southern China.
  • Examined the relationship between chronic illness, diversification choices, and income returns.

Main Results:

  • Farmers with chronic illness preferentially diversify into local off-farm employment over migration.
  • Local off-farm jobs exhibit strategic complementarity with farming activities for the health-impaired.
  • Income returns from diversification are substantially higher for farmers with chronic illness.
  • The income diversification relationship is upward sloping with diminishing marginal effects for the health-impaired, unlike the inverted U-shape for the healthy.

Conclusions:

  • Chronic illness shapes livelihood diversification towards local, complementary off-farm activities.
  • Diversification offers significant, albeit diminishing, income benefits for health-impaired rural farmers.
  • Policy interventions should consider the specific needs and opportunities for chronically ill farmers in off-farm employment.