Based on a nationally representative data set of rural labor force, this article makes an empirical study on the mechanism of employment adjustment of rural labor force in China and its determining factors. By analyzing the adjustment process of rural labor force between different industries and different sectors, the results show that the adjustment is mainly achieved through the entry of new labor force into off-farm employment and the exit of original labor force from off-farm employment, rather than through the smooth employment transformation among non-agricultural industries/sectors. Furthermore, the empirical estimation results show that variables such as age, human capital and social capital are important factors that affect employment transformation. Among them, age and education years have shown a robust U-shaped and inverted U-shaped impact, respectively.

Keywords: Rural Labor Market; Employment Adjustment; Transformation of Employment

Corresponding author: Tonglong Zhang, ztl3@sina.com