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Education in Production: Measuring Labor Quality and Management

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  • Dennis Tao Yang

Abstract

Production function studies have used the education of the head of the household or the average education of farm workers to assess the contribution of schooling to farm efficiency. In this paper I critically examine the information content of these measures by developing a team production model which suggests separate education measures to approximate labor quality and managerial skills. Empirical analyses based on Chinese farm household data show that the new measures are statistically superior to the existing alternatives. There is evidence of centralized decision making on the farms where the highest schooling contributes the most to production efficiency. Copyright 1997, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 79 (1997)
Issue (Month): 3 ()
Pages: 764-772

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Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:764-772

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Cited by:
  1. Chen, Zhuo & Huffman, Wallace & Rozelle, Scott, 2006. "Farm Technology and Technical Efficiency: Evidence from Four Regions in China," Staff General Research Papers 12605, Iowa State University, Department of Economics.
  2. Lohr, Luanne & Park, Timothy A., 2009. "Labor Pains: Valuing Seasonal versus Year-Round Labor on Organic Farms," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), August.
  3. Sonia Laszlo, 2003. "Education, Labour Supply and Market Development in Rural Peru," Development and Comp Systems 0312005, EconWPA.
  4. GOH, Chor-ching & LUO, Xubei & ZHU, Nong, 2009. "Income growth, inequality and poverty reduction: A case study of eight provinces in China," China Economic Review, Elsevier, vol. 20(3), pages 485-496, September.
  5. Yang, Dennis Tao, 2000. "Education and Allocative Efficiency: Household Income Growth during Rural Reforms in China," Working Papers 00-17, Duke University, Department of Economics.
  6. M. Niaz Asadullah & Sanzidur Rahman, 2005. "Farm productivity and efficiency in rural Bangladesh: The role of education revisited," Economics Series Working Papers WPS/2005-10, University of Oxford, Department of Economics.
  7. Xiao Luo & Chor-Ching Goh & Nong Zhu, 2014. "Income Growth, Inequality and Poverty Reduction: A Case Study of Eight Provinces in China," CIRANO Working Papers 2014s-03, CIRANO.
  8. Liu, Zinan & Zhuang, Juzhong, 2000. "Determinants of Technical Efficiency in Post-Collective Chinese Agriculture: Evidence from Farm-Level Data," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 545-564, September.
  9. Takashi Kurosaki & Humayun Khan, 2004. "Effects of Human Capital on Farm and Non-Farm Productivity and Occupational Stratification in Rural Pakistan," Hi-Stat Discussion Paper Series d04-46, Institute of Economic Research, Hitotsubashi University.
  10. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
  11. Li, Tianyou & Zhang, Junsen, 1998. "Returns to education under collective and household farming in China," Journal of Development Economics, Elsevier, vol. 56(2), pages 307-335, August.
  12. Yang, Dennis Tao & An, Mark Yuying, 2002. "Human capital, entrepreneurship, and farm household earnings," Journal of Development Economics, Elsevier, vol. 68(1), pages 65-88, June.
  13. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
  14. World Bank, 2003. "Nigeria Poverty : Environmental Linkages in the Natural Resource Sector - Empirical Evidence from Nigerian Case Studies with Policy Implications and Recommendations," World Bank Other Operational Studies 14612, The World Bank.
  15. Gee San & Tung-Chun Huang & Li-Hsuan Huang, 2006. "The Establishment and Application of a Labor Quality Index: The Case of Taiwan’s Manufacturing Industry," Social Indicators Research, Springer, vol. 79(1), pages 61-96, October.
  16. Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 2001. "Is literacy shared within households? Theory and evidence for Bangladesh," Labour Economics, Elsevier, vol. 8(6), pages 649-665, December.
  17. Glewwe, Paul, 2001. "Schools, Skills And Economic Development: Education Policies, Student Learning And Socioeconomic Outcomes In Developing Countries," Bulletins 12969, University of Minnesota, Economic Development Center.
  18. Chen, Zhuo & Eastwood, David B. & Yen, Steven T., 2005. "Childhood Malnutrition In China: Change Of Inequality In A Decade," 2005 Annual meeting, July 24-27, Providence, RI 19205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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