Agricultural education in Honduras : return on investment, quality, and efficiency

Abstract

The Agri-food sector, like any other economic sector, requires competent workers and entrepreneurs able to maximize productivity and cope with the various challenges the sector is facing. Agricultural education prepares these actors to acquire knowledge, identify options that optimize their productivity, and adapt to changing environments. However, the importance of agricultural education is declining in education policies, and nowadays, it is no longer an attractive field of study for the youth. There is a need to re-invent agricultural careers to the new demands of the agri-food and labor market sectors. As there is a limited number of studies available that analyze agricultural education in Latin-American and other developing countries, this research provides new insights by examining the determinants for return to investment, quality, and efficiency of agricultural education, taking Honduras as a case study. The present dissertation encompasses three interrelated studies. The first study addresses the research question on how the educational attainment on agricultural education, years of experience, age, sex, geographical region of residence, and work sector, affect the graduates earnings. This study computes the return to agricultural education by educational level, using several econometric techniques, such as the instrumental variables, Heckman’s two-step procedure, and the multinomial logit to tackle endogeneity of education, sample selection bias, and selection bias for choosing this field of study, respectively. The results show that regardless of the economic activity in which the individuals work, graduates from agricultural educational programs receive positive returns on their investment in education. High school graduates from these programs, have higher earnings within the economic activity of agriculture than non-graduates. At the university level, the graduates competencies are better paid in economic activities outside agriculture than inside, for example, in fields of manufacturing, public administration, and education. The second study addresses the question of what competencies employers require from graduates of agricultural education programs. Interviews and workshops were conducted, addressing employers from agricultural value chains, purposely selected, and using maximum variation sampling. The results show that graduates perform at an intermediate level in technical competencies. Of the 20 competencies identified, graduates perform poorly in at least six areas of competence, which requires immediate action. Although the analysis of academic curricula shows that the competencies included are relevant for employers to cope with the challenges faced by the agri-food sector, there is room for improvement. Finally, the third study addressed the question about the level of efficiency of the public institutions delivering agricultural educational programs, and the factors influencing it. This study computes the efficiency using the non-parametric approach data envelopment analysis (DEA). The model used is output-oriented, variable return to scale, and two-stage where controllable and non-controllable inputs are included in the first and second stages, respectively. This study follows a double bootstrapping procedure to avoid the caveats of the conventional DEA analysis. The evidence showed that none of the agriculture education centers in the sample is considered a full efficient entity. However, there is a potential to improve the usage of the current resources. It is possible by expanding the outcomes in a range of 1% to 50% without changing the existing resources. In summary, the findings of this dissertation provide compelling evidence that each additional level of agricultural education in Honduras is a worthwhile investment, and that graduates from both education levels, secondary and tertiary levels, are necessary to support Honduras economy. Nevertheless, improvements should be made in terms of the quality and the resources used in the provision of agricultural education. Based on the research findings, it is recommended to revise the academic curricula, with the aim of better matching education and labor market requirements. Secondly, a closer analysis of the implementation of the educational processes is necessary in order to enhance the competencies requested and identify better management of the resources available. Finally, setting formal collaboration mechanisms between the education centers, authorities, and the private sector could strongly improve agricultural education systems’ contribution to the performance of the sector. To further refine this research, it would be beneficial to increase the sample sizes to expand further the techniques used.