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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.

Suggested Citation

  • Dennis Tao Yang, 1997. "Education in Production: Measuring Labor Quality and Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 764-772.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:764-772
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    File URL: http://hdl.handle.net/10.2307/1244418
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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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