The Journal of Economics

Volume XXXI No. 2, 2005

The Impact of a Wife's Education on Her Husband's Earnings in Malaysia

Shahina Amin and Lisa K. Jepsen

Researchers have studied the effect of a wife's education on her husband's earnings for married couples in the United States, Hong Kong, Israel, Iran, and Brazil. We study how a wife's years of schooling affect her husband's earnings in Malaysia. Using a longitudinal sample from the Malaysian Family Life Surveys, we find that a wife's education has a positive and statistically significant impact on her husband's earnings. The magnitude is similar to studies of other countries. Our results suggest that policies in developing countries that increase women's education could have positive effects for families beyond the women's own labor force participation and earnings. (J1, O5)

Cost Efficiency and its Decomposition for Missouri Grain Farms

Shunxiang Wu, Tony Prato, and Michael Kaylen

This study computes and decomposes farm efficiency for Missouri grain farms using a nonparametric cost frontier approach. The results indicate that the overall cost efficiency is 58 percent, suggesting significant inefficiencies exist among sample farms. Misallocation of inputs and improper scale of operation are the major sources of inefficiency. A Tobit model is used to examine the impacts of variables such as farm size, specialization, tenancy position, hired labor, and investment on inefficiency. Technical efficiency is independent of farm size, while scale efficiency is not. Improving cost efficiency, particularly allocative and scale efficiencies, would enhance farm profits. (C61, Q12)

The Determinants of Parental Choice of Education: The Case of Pennsylvania

Tin-Chun Lin

This paper investigates that determinants of parents' education choices depend not only on economic factors but also on non-economic factors. I examined Pennsylvania's 67 counties in school year 1989-1990 as a case study of these determinants. An empirical model was applied to the study. Results reveal that K-12 private school enrollment rates (i.e., parents' choice of education) are positively related to median household income, income inequality, urban proportion, nonwhite proportion, and religious beliefs. In particular, both nonwhite proportion and religious beliefs exert an extremely positive and significant effect on private school enrollment rates. (C30; I20; O10)

The Economic Impact of Licensed Child Care in Southeast Missouri

Marcus Birk, Arjun Kapur, Eric Wittenauer, Rebecca Summary, Bruce Domazlicky

The child care industry has taken on increased importance as the labor force participation rate of women has continued to increase. This study measures the economic impact of the industry on southeast Missouri. Using a survey-based approach and IMPLAN, we find that the industry in southeast Missouri is responsible for almost 3,900 jobs, output of close to $117,500,000 and personal income that exceeds $51,500,000. (L84, R23)

Explaining Variation in Income Among Rural Farm Counties in the Great Plains

Edward L. Fitzsimmons

Considerable variation in per capita incomes among rural farm counties in the Great Plains during the late 1990s argue for the need to investigate the determinants of that variation to provide some guidance for economic development policy. Drawing from rural development literature, measures of the rural resource base were collected for 137 counties. Pooled regression was used to analyze the relationship between those measures and per capita personal income. Results emphasize the importance of private non-farm employment as a source of higher incomes. (O18)