Does Out-migration Reshape Rural Households' Livelihood Capitals in the Source Communities? Recent Evidence from Western China

This paper addresses whether out-migration influences rural households' livelihood capitals in western China and what these influences might be. Data for the analysis were obtained from a household survey in China's Qinling mountain area carried out in 2008. To overcome potential bias in earlier estimates, a variable for the predicted migration in each household is generated to control for selectivity in migration. The three-stage least square estimation is adapted to estimate, simultaneously, the livelihood capital equations, thus allowing for the possibility of contemporaneous correlation cin the error terms across the equations for estimated capitals, and the possibility of effects from unobserved common characteristics. We find that out-migration has significant influences on rural households' capitals. Contrary to strong positive influences on financial, human, and social capitals, migration has significant negative influences on physical capital and natural capital. The characteristics of migration also have different influences on the acquisition and accumulation of capitals. However, these influences depend on the environment and infrastructure at the community level and the age structure at the household level as well as the stage of the family's life cycle. The results suggest that to fully benefit from the positive influence of migration on rural households and their self-development capabilities, external support and intervention must be provided. The findings are evaluated and discussed in light of the household theory of labor migration. The analysis may contribute to the development of improvements in household livelihoods in remote mountain areas of western China.