Farmer education and farm efficiency in Nepal : the role of schooling, extension services, and cognitive skills (English)

This paper reports on the analysis of data from Nepal. The farm households surveyed were chosen so that about half were in a region exposed to the newly-introduced training-and-visit (T & V) extension service while the other half were exposed to less ...  See More + This paper reports on the analysis of data from Nepal. The farm households surveyed were chosen so that about half were in a region exposed to the newly-introduced training-and-visit (T & V) extension service while the other half were exposed to less intensive, traditional extension services. Thus, in addition to providing information on the mechanisms of education's effects on efficiency, this study evaluates the impact of T & V extension as introduced in Nepal. Our study finds a positive effect of education on efficiency for the three major crops, but only with wheat was the effect statistically significant at standard levels. There is definite evidence of a threshold level of education (6 years) below which education's impact is small and above which the effect is important. The effect of education on efficiency is important only for adapting to changing circumstances. We found no evidence that education's effects should be attributed, even in part, to family background correlates or to a measure we had of ability. The farmer's numeracy did affect productivity in wheat production. Our measures of modernity and agricultural knowledge were uncorrelated with efficiency.  See Less -