Does a higher minimum wage accelerate labour division in agricultural production? Evidence from the main rice-planting area in China

Agricultural production outsourcing, a new means of agricultural production, can optimise the allocation resources, reduce costs, and improve productivity. However, farmers' outsourcing behaviours are strongly interfered with by many factors such as economics, technology institutions. Using farmer-level data set from 2014 to 2018 in China, we examine effects minimum wage increase on rice behaviours. Our study relies Logit regression framework uses control function (C.F.) approach address potential endogeneity concerns. Results show that significantly reduces probability farmers conducting outsourcing. We also heterogeneous increase, find compared other services, adverse harvesting strongest; negative stronger for higher education. results provide insights into understanding how labour regulation affects division production.