Rural revitalization and farm household employment decisions: Micro evidence from China

Abstract

Against the backdrop of China's economic transformation and accelerated urban-rural integration, the structural shift in farmers' employment has emerged as a critical challenge for sustainable rural development. Using microdata from the China Family Panel Studies (CFPS) for 2018 and 2022, this paper empirically investigates the impact of rural revitalization on farmers' employment decisions and the underlying mechanisms. Employing econometric modeling, the results show that rural revitalization significantly promotes farmers' entrepreneurial employment tendencies, thereby contributing to the diversification of rural employment structures. Mechanism analysis reveals that internet usage serves as an important mediator: rural revitalization improves digital infrastructure and enhances information access, which in turn facilitates farmers' entrepreneurial activities. Furthermore, social participation plays a crucial mediating role, as farmers with higher levels of social engagement are more likely to pursue entrepreneurial employment. Heterogeneity analysis indicates that the effects of rural revitalization are stronger in eastern regions compared to central and western regions, and that farmers with lower life satisfaction and lower social trust levels are more responsive to policy incentives. These findings suggest that differentiated policy strategies, focusing on digital empowerment, infrastructure enhancement, and social capital development, are critical to optimizing the outcomes of rural revitalization and promoting a sustainable transition in rural labor markets.