This paper examines the impacts of off-farm employment on irrigation water efficiency (IWE) with a set of household level data collected in Hebei Province in North China. A major finding is that households with higher shares of laborers working off-farm locally seem to achieve higher IWEs. The effect of local off-farm employment is greater among those households that have made more efforts to use furrow irrigation. We also find that households with higher shares of elderly laborers and those with larger land holding are associated with lower IWEs. Households with better soil quality and those that pump from deeper wells are associated with higher IWEs.

This paper probes effects of the evolvement of labor resources on technical efficiency in crop production in rural China. Based on twelve years of data on crop production of 30 provinces in China, a stochastic frontier production function model is used to measure crop production efficiency in three crop-functional areas—the production area, the consumption area, and the balanced area. Then effects of both quantity and quality change in labor force on technical efficiency in different regions of China are analyzed. Results show that rural China generally has an increasing number of employees shifted to non-agricultural sectors and a decreasing trend of the stock of human capital. However, both these two changes in rural labor force have significantly positive effects on improving crop production efficiency. In addition, China’s technical inefficiency is at an average of 22.2%. Dynamically, the technical efficiencies show a tendency to rise steadily throughout China and in three areas, while the consumption area possesses the highest technical efficiency. Those results may lend some experience for other countries that are currently experiencing rural labor force and economic transition.