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Education and off-farm work

In rural areas households allocate the time of their members to some combination of farm and nonfarm jobs. A salient feature of this dual employment choice is the educational selectivity of workers. The determinants of educational selectivity in a framework that emphasizes the coordination of househ...

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Bibliographic Details
Published in:Economic development and cultural change 1997-04, Vol.45 (3), p.613-632
Main Author: Yang, D.T
Format: Article
Language:English
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Summary:In rural areas households allocate the time of their members to some combination of farm and nonfarm jobs. A salient feature of this dual employment choice is the educational selectivity of workers. The determinants of educational selectivity in a framework that emphasizes the coordination of household members are investigated. Sectoral time allocation is based on members' comparative advantage, which in turn depends on the utilization and returns to schooling in the farm and nonfarm sectors. Central to this model is a knowledge-spillover hypothesis that workers who participate in off-farm work may still contribute knowledge to farm management. Contributing knowledge to farming while participating in off-farm employment gives the more educated members a comparative advantage in off-farm work, allowing them to capture returns to education in both far and nonfarm sectors. Estimation of the model is based on cross-sectional Chinese farm household data.
ISSN:0013-0079
1539-2988
DOI:10.1086/452293