The author examines whether farmers respond reasonably efficiently to market signals, or whether their decision-making about farm expansion is based upon nonmarket principles. Four approaches to this problem are outlined. The first makes inferences from aggregate income data. The second...

By 1975, the effect of a year's primary schooling upon the wages of Africans in South Africa had fallen to about 2.5 percent--one of the lowest primary schooling returns in the world. Secondary schooling returns were high throughout the period 1960-90. The collapse of primary schooling returns...