The Returns from Schooling in a Diversified Rural Economy

Controlling for the endogeneity of activity choice and considering both household‐head and family schooling, we findevid ence of high returns from schooling in both crop andnoncrop activities. As schooling levels increase, the returns from schooling shift away from crop production. Failure to control for activity selection andfamily schooling is likely to result in biasedestimates of the returns from schooling in individual activities.