On‐Farm and Off‐Farm Returns to Education among Farm Operators in Northern Ireland
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This paper estimates returns to education for a sample of farm operators in Northern
Ireland. The analysis examines the relationship between education and on-farm and
off-farm labour incomes. Human capital earnings functions are estimated to identify
the marginal return to education measured as years of schooling as well as the
qualification level attained. Extending to a structural model, the methodology
controls for the endogeneity of education in the earnings function and potential
selection bias associated with off-farm labour market participation. In off-farm
employment, the analysis shows that returns to education are of the order of
between 6% and 9% for each additional year of schooling. However, on-farm
earnings were not found to be significantly related to years of education, although
the analysis does identify a significant on-farm return to an agricultural qualification