Education in Farm Production: The Case of Taiwan

Abstract The role of education in production is studied for the medium‐stage developing agriculture of Taiwan. Results suggest that, in a densely populated agriculture where production is typically carried out by small family farms, education of farmers of a moderate level (about six years of schooling on average) is able to contribute to production when rapid development is in progress. Unlike in U.S. agriculture, the contribution of worker effect surpasses that of allocative and scale effects, suggesting that the relative importance of these effects may vary with farm size and with the average level of education.