Farm earnings, educational attainment, and role of public policy: Some evidence from Mexico |
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Authors: | Ram D. Singh Maria Santiago |
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Affiliation: | Illinois State University, Normal, U.S.A.;Colegio de Postgraduados, Montecillo, Mexico |
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Abstract: | Using real household survey data from Mexico, this study evaluates 1. (a) the impact of schooling on farm earnings through the “direct” and “allocative” effects of human capital; | 2. (b) the household demand for children's schooling; | 3. (c) using macro-level data, the association between children's school-participation and some policy variables. | The overall rate of return to household heads' schooling is estimated at 25%, and for wives, 19%. The allocative effect of schooling of household heads dominates over the direct effect. Mother's schooling and farm size exercise significantly positive effects on household demand for schooling; while in the macro model, policy variables, government expenditure and pupil-teacher ratio appear strong determinants of children's attainment of primary schooling. |
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