How Does Migration Working Experience Change Farmers' Social Capital in Rural China?

Abstract

While a growing number of farmers migrate to urban sectors to engage in off-farm employment, little is known whether and how the migration working experience (MWE) changes farmers, especially their social capital. Using a survey data set with 2863 farm households in 14 provinces in China, we developed a mediation model to examine the impact of MWE on social capital, as well as the roles of household income, farmers’ risk attitude, and information and communications technologies (ICTs). We show that MWE has a significantly positive impact on social capital and weak ties in social capital, which is mediated by household income, risk attitude, and ICT adoption. In particular, MWE can increase income, enhance risk preference, and promote ICT adoption, thus, leading to higher social capital. Moreover, ICTs play a moderating role in the impact of MWE on income and risk preference, that is, ICTs can decrease the impact of MWE on income, and completely substitute the impact of MWE on risk attitude. Our study provides an explanation for the reason why farmers are willing to migrate despite unfavorable working conditions they may endure in urban areas.