Abstract
How does off-farm employment affect grain production? Previous research findings are inconsistent. This paper provides a general theoretical framework to explain the effect of off-farm employment on grain production and consider that the effect is non-liner. The empirical results show that off-farm employment decreases grain production and insignificantly changes grain crop structure. Importantly, we find an inverted-U correlation between off-farm employment and grain production, meaning that off-farm employment will increase grain production when the off-farm labor supply is relatively low and will decrease grain production when the off-farm labor supply is relatively high. Further, we investigate the heterogeneity of the causal effect in the destinations of off-farm employment, household's land scale, land features, household location, and household aging.
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