Why Non-Farm Employment Quality Matters for Sustainable Agricultural Service Provision? Evidence from a Farmer Survey in Rural China

Abstract

Agricultural productive services (APS) play an important role in improving agricultural efficiency and ensuring food security. Existing studies have widely recognized that labor scarcity induced by rural labor transfer stimulates farmers’ demand for APS and promotes the expansion of agricultural service markets. Yet non-farm employment in developing countries is often characterized by instability, temporariness, and informality, which may generate volatile service demand and undermine the sustainable provision of APS. Based on survey data from 684 maize-producing households in China, this study constructs a multidimensional index of non-farm employment quality and investigates how it influences APS adoption intensity and transaction stability. Our results confirm that improvements in non-farm employment quality significantly increase APS adoption intensity, and the findings remain stable under alternative measurements and estimation methods. Mechanism analysis reveals that higher employment quality promotes APS adoption intensity by reducing farmers’ risk perception, while this effect is moderated by social capital. Heterogeneity analysis shows that the positive effect of non-farm employment quality is concentrated among growth-stage households, lower-land-fragmentation households, small-scale households, and single-type employment households. Further analysis indicates that higher employment quality contributes to more stable and long-term contractual relationships between farmers and service providers. By highlighting the importance of non-farm employment quality in stabilizing agricultural service demand and fostering stable transaction relationships, this study contributes to ongoing discussions on rural labor transformation and the sustainable development of APS markets under smallholder farming systems in developing countries.