Can Migrant Workers Returning Home for Entrepreneurship Increase Agricultural Labor Productivity: Evidence from a Quasi-Natural Experiment in China

Abstract

One of the effective ways to crack the “Three Rural Issues” and promote rural revitalization is to improve agricultural labor productivity (ALP). However, at this stage, improving China’s ALP is still facing many obstacles and bottlenecks. Promoting migrant workers returning home for entrepreneurship is an important breakthrough point for solving this problem. This paper regards the pilot policy of migrant workers returning home for entrepreneurship as a quasi-natural experiment and empirically investigates the influence of migrant workers returning home for entrepreneurship on ALP and explores its potential mechanism and heterogeneity using county area panel data from 2011–2019. It found the following: Firstly, the policy of migrant workers returning home for entrepreneurship significantly increases ALP. Secondly, migrant workers returning home for entrepreneurship indirectly leads to a rise in ALP through the promotion of agricultural mechanization production. Thirdly, the heterogeneity test demonstrates that migrant workers returning home for entrepreneurship purposes have a significant influence in enhancing ALP in the eastern areas, plains areas and non-agricultural strong areas. The findings of this paper not only provide an important real-world basis for the government to further support migrant workers returning home for entrepreneurship but also provide useful policy insights for the modernization and development of agriculture and rural areas.