Intergenerational transmission of nonfarm skills among rural laborers in China: evidence from rubber farmers

In the context of continuing transition in rural labor toward nonagricultural sectors in China, individuals with nonfarm skills demonstrate a significant competitive advantage in the labor market. This paper draws on survey data conducted on 629 rubber (Hevea brasiliensis) households in Hainan Island and Xishuangbanna, the two largest producing regions in China. Using binary Logit and mediation models, the authors examine impacts of nonfarm skills on household income and assess the intergenerational transmission of these skills from parents to children. The findings indicate that acquiring nonfarm skills substantially increase household nonagricultural income and exhibits strong intergenerational persistence. Mechanism analysis reveals that children’s formal education serves as a vital channel for the intergenerational transmission of skills, while household rubber plantations, to some extent, function as a “resource curse,” hindering the transfer of nonfarm competencies. The estimated mediation effects of years of schooling and household rubber-tapping income are 5.2% and 8.0%, respectively. The heterogeneity analysis further reveals that the intergenerational transmission is more pronounced among households characterized by a higher share of nonfarm income, children with at least a high school education and male descendants. In contrast, the transmission effect is attenuated in settings where rubber-tapping income is relatively high. These findings suggest that governments should prioritize and customize nonfarm skill training programs in accordance with individuals’ education attainment, household livelihood capital and gender-specific characteristics.