A Study On The Effect Of Economic And Geography Factors On The Employment Decision Of Household

The rural households are the main body of village economy in the rural areas ofChina. According to the household contract responsibility system, farmers have gotmore right on production management. The rural households can choose their way ofwork freely. their work decisions not only affect the rural households themselves,butalso the development of rural economy. Therefore the employment decisions made byrural household have been becoming as the most prevailing factor of economicdevelopment in rural areas. However, the employment decisions of household in ruralareas are greatly influenced by economic an geographical environment. However,the decisions are influenced greatly by different economic and geographical factors.Our land is majority, a great difference between the economical and geographicalenvironment. And in different economic and geographical environment there is a greatdifference in employment decisions. Therefore, the aim of this paper is to analyze thevariance of the employment decisions under different economical and geographicalconditions from the perspectives of rural household in China.The paper uses a combination of quantitative and qualitative methods. And theM-logit model and Multiple linear regression model are used to analyze the varianceof employment decisions in different economical and geographical conditions. Thethesis consists of five chapters.Chapter One is the introduction. Chapter two described the theoretical basis ofthis paper. And give a definition of the related concept. Chapter three make acomparison of the characteristics of the employment decisions in different economicand geographical environment. This section will analyze the characteristics ofemployment decision. Chapter four make quantitative analysis from household andvillage-level. This section introduces the variables related to geographical factors asdummy variable to the econometric models. Chapter five sums up the mainconclusions firstly, and then summarize the theory inspiration. At last, propose somepolicy recommendations, and then points out the insufficiencies and the furtherresearch directions of the study.Based on the research above, this paper reached the fallowing conclusions: (1) Land has a great impact on the employment decision in rural areas. The mainreason why people in plain area are more likely to be farmers is that people in theseareas has more land.(2) The nearer the households live to the big city,the more likely they will go tobig city to be employed to be workers. Household in rural areas are more likely to beemployed as workers in the area richer or poorer. But the reason is different.(3) If the rural areas are of booming economy,the rural households are morelikely to do business.The aim of the paper is to identify the influence of economic and geographicalfactors on the employment decisions of rural household, therefore finding a way toincrease the income of rural households.