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On‐Farm and Off‐Farm Returns to Education among Farm Operators in Northern Ireland

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  • Wallace, Michael T.
  • Jack, Claire G.

Abstract

This paper estimates returns to education for a sample of farm operators in Northern Ireland. The analysis examines the relationship between education and on-farm and off-farm labour incomes. Human capital earnings functions are estimated to identify the marginal return to education measured as years of schooling as well as the qualification level attained. Extending to a structural model, the methodology controls for the endogeneity of education in the earnings function and potential selection bias associated with off-farm labour market participation. In off-farm employment, the analysis shows that returns to education are of the order of between 6% and 9% for each additional year of schooling. However, on-farm earnings were not found to be significantly related to years of education, although the analysis does identify a significant on-farm return to an agricultural qualification

Suggested Citation

  • Wallace, Michael T. & Jack, Claire G., 2011. "On‐Farm and Off‐Farm Returns to Education among Farm Operators in Northern Ireland," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108786, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc11:108786
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    References listed on IDEAS

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    More about this item

    Keywords

    Human Capital; Time Allocation and Labor Supply; Agricultural Labor Markets; Wage Level; Labor and Human Capital; J24; J22; J43; J31;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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