Journal Article

Education in Production: Measuring Labor Quality and Management

Dennis Tao Yang

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 764-772
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244418
Education in Production: Measuring Labor Quality and Management

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  • Demand and Supply of Labour
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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.

Keywords: farm profits; labor quality; managerial skills; schooling composition; J240; O130; O150; P320

Journal Article.  0 words. 

Subjects: Demand and Supply of Labour ; Socialist Institutions and their Transitions ; Economic Development

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