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Whose education matters in the determination of household income

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  • Jolliffe, Dean

Abstract

This paper aims to answer how best to model education attainment, which is an individual-level variable, in household-level income functions. The accepted practice in the literature is to use the education level of the household head. This paper compares the head-of-household model to three competing models and concludes that the maximum or average level of education in the household is a better explanatory variable of household income. Least absolute deviations (LAD) estimators and censored least absolute deviations (CLAD) estimators are used to predict income. Standard errors, which are robust to violations of homoscedasticity and independence, are generated by a boot-strap method that replicates the two-stage sample design.

Suggested Citation

  • Jolliffe, Dean, 1997. "Whose education matters in the determination of household income," FCND discussion papers 39, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcnddp:39
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    Cited by:

    1. Marian Rizov, 2005. "Human Capital and the Agrarian Structure in Transition: Micro-Evidence from Romania," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 26(1), pages 119-149, February.
    2. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    3. Firman Witoelar, 2005. "Inter-household Allocations within Extended Family: Evidence from the Indonesia Family Life Survey," Working Papers 912, Economic Growth Center, Yale University.
    4. Sonia Bhalotra, 2007. "Is Child Work Necessary?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 29-55, February.
    5. Masakazu Hojo, 2004. "Measuring Education Levels of Farmers: Evidence from Innovation Adoption in Bangladesh," Discussion Papers in Economics and Business 04-06, Osaka University, Graduate School of Economics.
    6. Zhou, Yuan & Zhang, Yili & Abbaspour, Karim C. & Mosler, Hans-Joachim & Yang, Hong, 2009. "Economic impacts on farm households due to water reallocation in China's Chaobai watershed," Agricultural Water Management, Elsevier, vol. 96(5), pages 883-891, May.
    7. Rizov, Marian, 2002. "Agricultural Production Organization in Transition Economies and the Role of Human Capital: Evidence from Romania," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24925, European Association of Agricultural Economists.
    8. Datt, Gaurav & Jolliffe, Dean, 1999. "Determinants of Poverty in Egypt," FCND briefs 2, International Food Policy Research Institute (IFPRI).
    9. Mark Rosenzweig & Andrew D. Foster, 1996. "Household Division, Inequality and Rural Economic Growth," Home Pages _074, University of Pennsylvania.
    10. Ajay Mahal & Anup Karan & Victoria Y Fan & Michael Engelgau, 2013. "The Economic Burden of Cancers on Indian Households," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-10, August.

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    Keywords

    Education; income;

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