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10 Panel 1There was a tendency for households with part-timeworkers to have higher incomes. On the other hand,education was not an important factor in determiningthe income group of households. This is because of thefact that just like in the farming sector, most off-farmemployment opportunities such as those in factories,rubber tapping and contractor did not require highereducation background.As described previously, household incomes in eacharea have different characters. This section attempts toclarify which variables are significant in determiningfarm household income by conducting a regressionanalysis. The model used is as follows:Y=a + bi Xi+...+bjXj+u;Where;?-Y is the total monthly household income(Ringgit).-X1 is the number of family members (persons);-X2 is the farm size in acres;-X3 is the age of the head of the household inyears;-X4 is a dummy variable for the characteristics ofthe household: 0 for full-time and 1 for part-time farmhouseholds;-X5 is a dummy variable for the occupation ofthe head of the household: 0 for a full-time farmer and 1 for a part-timefarmer;-X6 represents the location: 0 is given for theEast coast while 1 represents the West coast;-X7 is a dummy variable for Kedah: where 1 isgiven for Kedah and 0 is given for the otherstates;-X8 is a dummy variable for Penang state: 1equates to Penang and 0 is given for the otherstates;-X9 is a dummy variable for Selangor state:where 1 is given for Selangor and 0 equates to theother states;-X10 is a dummy variable for Kelantan state: 1represents Kelantan and 0 represents the otherstates;-X11 is a dummy variable for Terengganu state:1 equates to Terengganu and 0 is given for theother states,One of the characteristics of a household in thegranary area is the pattern of employment: are thefamily members employed as workers in the off-farmsector or are they employed in the farm itself?The other characteristic is the occupation of the headof the household: is he a full-time or a part-time paddyfarmer? Four regression models were created: 1) ModelI examines the differences in household incomes in theWest vis-à-vis the East Coast areas; 2) Model IIexamines the differences between the two areas on theEast Coast; 3) Model III examines the differencesamong the three states on the West Coast except forKedah; and 4) Model IV examines the differenceamong the three areas on the West Coast except forSelangor. The results of the regression analysis areshown in Table 5. The regression analysis for Model Ishows that the differences in the farm size andhousehold characteristics of full-time farmers and parttimefarmers were statistically significant at the 1%level, which had a positive sign for household income.The tenancy (renting of land) was significant at the 5%level, which had a negative sign. This meant that whenpaddy farmers rented more land for farming, it actuallyhad a negative impact on their income even though thefarmers could produce more paddy in the larger area.Between both coastal areas, household income on theWest Coast tended to be higher.The Work of the 2010/2011 API Fellows