Agricultural policy finance and rural employment: a perspective on county-level educational resource allocation

Examining the impact of agricultural policy finance on rural employment, as well as the underlying mechanisms, is of paramount importance for advancing rural financial development and achieving the goal of common prosperity in China. Drawing on county-level panel data from 2007 to 2018, this study systematically investigates the effects of agricultural policy finance on rural employment and its internal mechanisms. The findings reveal that agricultural policy finance significantly enhances rural employment, achieving a dual objective of "expansion" and "improvement" in employment quality. This conclusion is robust across various tests for reliability. Further heterogeneity analysis indicates that the effect of agricultural policy finance is particularly pronounced in non-core urban counties, western regions, and small-scale counties. Mechanism analysis demonstrates that the allocation of educational resources serves as a key driver of both employment growth and structural optimization. Additionally, a threshold effect is identified: when educational resources reach a certain level, the synergistic effect of agricultural policy finance may weaken, potentially exhibiting diminishing marginal returns. These results offer important policy insights for enhancing the role of agricultural policy finance in promoting rural employment.