World Bank Document

working, is more influenced by the Table 5.3 Farmer education it would be short-sighted to leavelevel of the individual's schooling and farmer productivity a large part of the next generationthan by any other factor. But there Estimated percentage of farmers illiterate.are also many studies of the directincreaseannual farm Gutput EMPLOYEES.effect of schooling on individualThe second type ofdue to four yearsEproductivity and earnings, which Study of primary education study relates the educational levelsproductivity anh earmngs, wohc Study Wrather than none of individuals to their wages andare examined are examined here under two heads W/\ith complementary inputs' salaries. aais If feucto education affects fet theh-those relating to the self-employed Brazil (Garibaldi), 1970 18.4and those relating to employees. Brazil (Resende), 1969 4.0 capacity to learn, innovate andBrazil (Taquari), 1970 22.1 adapt, its effects should be par-Brazil (Vicosa), 1969 9.3 ticularly important for employeesTHE 5ELF-EMPLOYED. 1The hy- Colombia (Chinchina),potheses are straightforward: that 1969 -0.8 doing nonroutine or changingColombia (Espinal), 1969 24.4 tasks. For employees in modernprimary education helps people to Kenya, 1971-72 6.9obtain and evaluate information Malaysia, 1973 20.4 enterprises, primary education alsoabout improved techniques and Nepal (wheat), 1968-69 20.4 promotes disciplined work habitsabout Improved techniques and South Korea, 1973 9.1 and responsiveness to furthernew opportunities, to keep records Average (unweighted) 13.2 training, as well as offering the adactivitiesand the risks of future Without complementary inputsvantages of literacy and numeracy.Brazil (Candelaria), 1970 10.8ones. More generally,Studies of the rateprimaryof return toBrazil (Conceicao deschooling is a training in how to Castelo), 1969 -3.6learn, an experience in self- Brazil (Guarani), 1970 6.0 mainly with relatively large urbanBrazil (Paracatu), 1969 -7.2 enterprises; but a few have indisciplineand in working for Colombia (Malaga), 1969 12.4 edrsmal busines and i-longer-term goals. Colombia (Moniquira), cluded small businesses and agri-1969 12.5 cultural workers. All find thatMost of the empirical evidence Greece, 1963 25.9comes from agriculture-studiescomparing the productivity, yieldsAverage (unweighted) 8.1 eamrings. And when the extra ear-erig.Adwe h xr anandandinnovativeunnshoovedactivityfarmers.of schooledNotllNo information on availabilityof complementary inputsingsresultingtion arefromweighed againstprimary educa-its costs,thes studischontdfaroleds a uatly t Average of eight high rates of return are consistentlythese studies controlled adequately stde studies ,uvegtd (unweighted) 2\ 6L 6.3 found. Similar studies for secondaryfor other influences, particularly a. Improved seeds, irrigation, transport and higher education find lower,wealth; but many did (for example, to markets and so on. though nonetheless substantial,by including farm size as a proxyreturns (see Table 5.4 and box).for wealth).The general weight of the evi- pends on the cost of achieving Investment priorities in educationdence (see Table 5.3) lends strong them. It is thus significant thatand consistent support to the studies that went on to compare Primary education is of particularhypotheses-and is particularly the increase in production result- importance in overcoming absolutecompelling because the studies ing from education with the costs poverty. But secondary, higher,measure productivity directly, not of that education (for example, in vocational and adult educationthrough wages. Where the com- Korea, Malaysia and Thailand) and training also have major rolesplementary inputs required for found rates of return comparing to play.improved farming techniques were very favorably with investment inavailable, the annual output of a other sectors. It is, of course, im- PRIMARY EDUCATION. In counfarmerwho had completed four possible to predict which places tries where it is far from universal,years of primary schooling was will offer scope for improved farm- the case for increasing the proporonaverage 13.2 percent more than ing techniques in 10 years' time, tion of children who complete prionewho had not been to school. when children leave school. In mary education is strong. WhileAs expected, where complementary some, effects on farm productivity there have been high economicinputs were not available, the in- may be low. But given past progress returns in the past, it has beencrease in output resulting from in agricultural research, it is prob- suggested that the rate of return toadditional schooling was on aver- able that some places with stagnant primary schooling (especially inage smaller-but still substantial. technology now will offer greatly certain jobs) may decline as theWhether these increases should improved possibilities. Thus, on proportion of the labor force withbe regarded as large or small de- growth as well as equity grounds, primary education increases. But48