Shared literacy and employment in the nonfarm sector

Masakazu Hojo

Applied Economics, 2012, vol. 44, issue 10, 1209-1217

Abstract: This article empirically examines the external effect of family literacy on the earnings of illiterate workers. Considering recent findings that rural nonfarm sectors in developing countries are becoming more important in determining the welfare of households, this article tests two hypotheses: (1) an illiterate person living with literate members (i.e. a proximate illiterate person) is more likely to find a job in the nonfarm sector than is an illiterate person living with no literate person (i.e. an isolated illiterate person) and (2) wage income of a proximate illiterate worker is higher than that of an isolated illiterate worker. The empirical results suggest that proximate illiterate persons earn higher wages than isolated illiterate persons because they are more likely to be employed in the nonfarm sector.

Date: 2012
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DOI: 10.1080/00036846.2010.539538

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