ABSTRACT
During the collective period until the early 1980s, natural resource advantages and location were the main determinants of income differentials between Chinese villages. Cash income was obtained mainly from sales of vegetables from the private plot and minor farm products. Politicians stressed the human factor and particularly village leadership as a major factor in the development of the village economy. However, severe restrictions on the scope and size of village non-agricultural activities and very limited access to urban labour markets did not permit much differentiation of economic activities and off-farm income. Since the introduction of private farming and the booming development of both urban and rural economies, opportunities for off-farm income have increased tremendously. In this article, we will identify the main determinants of wage income in rural China on the basis of a 1998 survey of about 3,500 households in 11 villages in Wuxi municipality (eight of which are located in present Xishan municipality, three in the city) in Jiangsu province and another 11 in Baoding municipality (nine of which are in Qingyuan county, two in the city) in Hebei province. 1
The following includes all reported wage earnings of individual rural residents, irrespective of the enterprise, sector or locality where they were earned. First, we consider their size and contribution to average household income. Second, we will isolate contributing factors to wage earnings, such as age, position in the household, household composition, gender, education, profession and place of work. Finally, we will examine in detail the wage earnings of Communist Party and Youth League members. These aspects will be considered at the individual, household, village or county level.
