FemaleNon-CognitiveSkillsandCashCropAdoption: EvidencefromRuralMalawi MichaelFrese,NUSBusinessSchoolandLeuphanaUniversityLueneburg MarkusGoldstein,WorldBank TalipKilic,WorldBank ∗ JoaoMontalvao,WorldBank October2015 Abstract This paper documents a robust positive correlation between female farmers’ non-cognitive skills and cashcropadoption.WedosointhecontextofMalawi,oneofthepoorestcountriesintheworld,where 80percentofthepopulationpracticessmallholderfarming.Wefindthatthenon-cognitiveskillsofmale farmersarenotassociatedwithcashcropadoptiononcewecontrolfortheirwives’non-cognitiveskills. We also provide evidence that female non-cognitive skills are associated with critical inputs for the successful adoption of cash crops, such as farm labor, fertilizer, and information on how to grow and market cash crops. Finally, female non-cognitive skills are significantly more important in determining tobacco adoption in patrilocal societies where women are at a relative social disadvantage, than in matrilocalsocieties.Theseresultsareimportantforthedesignofpolicyinterventionstodevelopnoncognitiveskillsoffemalefarmersandtopromoteagriculturalcommercialization. Keywords:CashCrops,Non-CognitiveSkills,Gender. ∗ Emails:[email protected],[email protected],[email protected],[email protected]. 1.Introduction The majority of smallholder farmers in developing countries specializes in crops for their own consumption,eventhoughcashcrops,i.e.cropsgrownprimarilyformarketing,arethemajorsourceof wealth.Theliteratureontechnologyadoption,reviewedbyFederetal(1985),FosterandRosenzweig (2010), and Jack (2013), emphasizes that high-value crop adoption may be constrained by different market failures, such as imperfect information about the profits or about how to manage the crop, limited access to markets, incomplete insurance and credit solutions, and frictions in the markets for inputs. However a minority of farmers is able to overcome these constraints. In this paper we ask whether the ability to successfully grow cash crops is related to non-cognitive entrepreneurial skills, suchastenacity,optimism,andperseverance. Thereareseveralreasonswhynon-cognitiveskillsmayallowfarmerstoovercomethesemarketfailures and cultivate cash crops. For example, tenacious farmers may be more willing to work through the additional risks associated with cash crops, optimistic farmers may have greater (subjective) expectationsabouttheprofitabilityofgrowingcashcrops,andpatientfarmersmaybemorewillingto sacrifice present consumption in order to make the necessary up-front investments. In all these examples, non-cognitive skills increase the expected profitability of cash crop adoption and thus the personalmotivationtodoso. Thepossibilitythatnon-cognitiveskillshelpthesuccessfuladoptionofcashcropshasatleasttwopolicy implications.First,totheextentthattheseskillsaremalleable,suchevidenceisrelevantfordesigning interventionsthataimtodevelopnon-cognitiveskillsamongsmallholderfarmers.Second,itmayalsobe relevantfortargetingandmeasuringtheheterogeneousimpactsofinterventionsdesignedtoalleviate moretraditionalconstraintstocashcropadoptionalongthenon-cognitiveskilldistribution. A recent but growing body of evidence highlights the importance of non-cognitive skills in predicting economicoutcomesindevelopedcountries,notablyinthelabormarket(seee.g.,Heckmanetal,2006; LindqvistandVestman,2011).1Unfortunately,thescarcityofnon-cognitivedataindevelopingcountries 1 The literature uses different terms to refer to these skills, including non-cognitive skills, personality traits, soft skills,non-cognitiveabilities,character,non-cognitiveaptitudes,andsocio-emotionalskills.Attheheartofthese different terminologies lies the (mostly open) question of whether these personal characteristics are genetic or learned, and thus sensitive to carefully designed education interventions. Almlund et al (2010) argue that these characteristicsarelikelytobemoremalleableoverthelifecyclecomparedwithcognition. hashamperedresearchprogressonthistopicinruralpoorcommunities.Onestrengthofthispaperis theavailabilityofnon-cognitivedatafrombothmaleandfemalesmallholderfarmersinruralMalawi,as wellastheircropportfoliochoicesandotherdetailedagricultureinformation,inadditiontothemore standardsocioeconomicquestions. Wefocusonthedecisiontogrowtobacco,ahighlyprofitablecashcrop,whichaccountsformorethan 60percentofMalawi’scashrevenues,70percentofwhichiscultivatedbysmallholderfarmers.While thispaperisnottakingaviewastowhetherornothouseholdsshouldgrowtobacco,thisisacropthat isexclusivelygrownfor(export)marketing.Tobaccothusprovidesuswithanunambiguousexampleofa cash crop, which we use to shed light on the role of non-cognitive skills in determining agricultural commercialization. We find that farmers with higher non-cognitive skills are substantially more likely to grow tobacco. Interestingly,wefindthatthenon-cognitiveskillsofmalefarmersarenotatallassociatedwithtobacco adoptiononcewecontrolfortheirwives’non-cognitiveskills.Aonestandarddeviationincreaseinthe non-cognitiveskillsoffemalefarmersisassociatedwitha6percentagepointincreaseinthelikelihood of growing tobacco. This effect is not driven by differences in cognitive ability, literacy, health, demographic characteristics, off-farm employment opportunities, wealth, or community level determinantsoftobaccoadoption. We also provide evidence that non-cognitive skills predict critical inputs to the successful adoption of tobacco. Namely, they are strongly correlated with the amount of farm labor recruited, the use of fertilizer,andaccesstoinformationabouthowtocultivateandselltobacco.Finally,wefindthatnoncognitive skills is a much stronger predictor of tobacco adoption for female farmers in patrilocal communities where women are thought to enjoy relatively lower status and power, than they are for femalefarmersinmatrilocalcommunities. Thispaperisorganizedasfollows.Section2describesourdataandthemeasurementofnon-cognitive skills. Section 3 presents our results linking spousal non-cognitive skills with household tobacco adoption.Section4concludes. 2.DataandEmpiricalMethod 2.1.Sample The data used in this paper comes from the second wave of the Malawi Third Integrated Household Panel Survey (IHPS), collected in 2013. For rural households – a level at which the sample is representative–thesurveyincludedadetailedagriculturequestionnaireaboutthelast2011-2012rainy season. It also included a psychometric questionnaire developed by industrial and organizational psychologists to measure the cognitive and non-cognitive skills of up to two household members that haveasayinfarmmanagementdecisions.2InMalawi,apredominantlymatrilinealsociety,itiscommon forwomentoshareresponsibilityandauthoritywiththeirhusbandsforfarmmanagementdecisions.In the IHPS rural sample, about 73 percent of the couples report joint, rather than individual, decision makingonfarmmanagement.3 Ourworkingsampleisbasedon479jointfarmmanagercouplesfrom139communities,onwhichwe havepsychometricdataforbothspouses.4Thissampleallowsustoestimatetheindependenteffectof each spouse’s non-cognitive skills on tobacco adoption. Tables A1 to A3 in the appendix compare summary statistics between our working sample and the remaining 1,471 couples in the IHPS rural samplewithmissingpsychometricdataforatleastoneofthespouses.TableA1focusesoncommunity level characteristics, Table A2 on farm level characteristics, and Table A3 on characteristics related to thehousehold,thewife,andthehusband.5 TableA1showsthatthecommunitiesinoursamplearenotrandomlyselected.Forexample,ontheone handoursampleover-representscommunitiesonwhichthereisatobaccoclub(46percentversus31 percent),andanagriculturalextensionofficerresides(52percentversus38percent).Ontheotherhand oursampleunder-representsmatrilocalcommunities(23percentversus49percent),onwhichthereisa commercial bank or MFI (13 percent versus 17 percent). However once we control for districts these differencesarenolongersignificant.TableA2andA3showthatoverallhouseholdsinoursampledonot appear be strongly selected, even though some patterns of significant non-random selection are still 2 Farminghouseholdswereaskedtoidentify“whointhehouseholdmakesthedecisionsconcerningcropstobe planted,inputuseandthetimingofcroppingactivities”foreachplotofland.Uptothreedecision-makerscouldbe listed. We use the response to identify the spouses that have a say on farm management. Even though this question was asked separately for each plot of household land, in practice the intrahousehold distribution of decision-makingpowerisvirtuallyconstantacrossplotswithinagivenhousehold. 3 Thevastmajority(86%)ofsingleheadedhouseholdsareheadedbyawoman,halfofwhicharewidows. 4 What we refer to communities corresponds to sampled enumeration areas in the IHPS. In rural settings, an enumerationareacorrespondstoonevillageorasmallgroupofcontiguousvillages. 5 Reasonsformissingspousalinformationonpsychometricdatamayhavebeentiedtorespondentunavailability atthetimeoftheinterview,aswellastoenumeratoreffortandoveralltimelineoffieldoperations. presentwithincommunities.Takentogetherthisevidenceindicatesthatstrictlyspeakingoursisnota randomsampleofruralcouples.Asaresult,ourinferencesonlyapplytothepopulationweexamine.6 2.2.DescriptiveStatistics Tables1and2presentbasicdescriptivestatisticsforourworkingsample.Column1reportsmeansand standarddeviations.Columns2and3reportoverallandwithin-communitymeandifferencesbetween tobaccoadoptersandnon-adopters,togetherwiththeirassociatedp-values.Sincethemainanalysiswill controlforcommunityfixedeffects,weconcentratethediscussiononwithin-communitydifferencesin Column3. Table1focusoncharacteristicsrelatedtotheorganizationoftheproduction.Fourpointsareofnote. First,tobaccocultivationsignificantlycorrelateswithhigherprofitability.Specifically,growingtobaccois associated with a 71 percent increase in annual net income from crop activities per hectare of land. Second,consistentwiththenotionofimperfectmarketsforfoodthereislittlecropspecialization,with virtuallyallhouseholdsgrowingmaizeirrespectiveofwhethertheygrowtobacco.Moreover,farmsize for households that grow tobacco is 57 percent larger than for households that do not grow tobacco (Fafchamps, 1992). Third, in line with the notion that tobacco is an input-intensive crop, tobacco adopters use 28 percent more labor per hectare of cultivated land than non-adopters, and are 23 percentagepointsmorelikelytousefertilizer.Fourth,tobaccoadoptersare25percentagepointsmore likelytohavereceivedadviceonhowtocultivateandselltobacco,suggestingthateventhoughtobacco isawell-knowncropinMalawiitisnotnecessarilyeasytogrow. Table 2 focuses on spousal and household characteristics. Irrespective of their gender, spouses in tobacco households do not differ significantly on most individual characteristics from spouses in nontobacco households, with the exception that females in tobacco households are 11 percentage points lesslikelytobeengagedinoff-farmwork.Thisisnotsurprisinggiventhattobaccoisalabor-intensive crop and off-farm work is an alternative strategy to generate income. Moreover consistent with the notion that tobacco is a very profitable income generating activity, households growing tobacco are significantlywealthier,asmeasuredbythevalueofdurableassets,whichis120percenthigheramong tobaccoadopters. 6 Reassuringly the results presented in this paper are robust to explicitly accounting for missing spousal psychometric data. Specifically, we obtain qualitatively similar results when using weights constructed from the inverseoftheestimatedprobabilityofinclusioninoursample. 2.3.Psychometrics 2.3.1.MeasuringNon-cognitiveSkills Thepsychometricsquestionnaireincludestwenty-eightentrepreneurialpersonalityquestions.Example questions are: “I can think of many times when I persisted with work when others quit” and “In uncertaintimesIusuallyexpectthebest.”Responsestoallquestionsareorderedonafive-pointscale, withoneindicating“stronglydisagree”andfiveindicating“stronglyagree”.Thefullsetofquestionsis listedinTableA4intheappendix. There are two basic concerns with using the responses to these questions to measure non-cognitive entrepreneurial skills. First, subjective questions are prone to measurement error (Bertrand and Mullainathan,2001;CunhaandHeckman,2008).Second,theresponsestothedifferentquestionsare positively correlated with one another, which call for their aggregation into summary measures.7We followedHeckmanetal(2013)andappliedexploratoryfactoranalysis(EFA)toaddressbothissues. TheEFAestablishedthataone-dimensionalsummarymeasureofninequestionssufficestoexplainthe variationintheentrepreneurialnon-cognitivedata,forboththewivesandthehusbands.8TheCronbach alpha’sstatisticoftheseninequestionsequals0.71forwivesand0.69forhusbands.Wecomputethe weighted average of the questions that were retained through EFA, whose weights equal their correspondingfactorloadings.9Inordertogetamorenormallydistributedmeasureofentrepreneurial personality, we follow the approach in Lindqvist and Vestman (2011), which first transforms the resulting index into a percentile ranking and then converts it by taking the inverse of the standard 7 Apopularwaytosummarizetheseresponsesistoformsimpleunweightedaveragesofinterpretablegroupsof questions(asindeMeletal2010).Theproblemwiththisapproachisthatitnotonlyusesarbitraryweights,but more importantly it does not correct for measurement error, except through simple averaging (Heckman et al 2012). 8 Eightofthepersonalityquestionsarenegativelyworded,where“stronglydisagree”indicateshavingmoreofthe underlyingpersonalitytrait.Apreliminaryanalysisrevealedthatquestionswordedinoppositedirectionsproduced differentfactors.Weinterpretedthistobeartifactsofwordingdirectionduetopossibledifficultyinunderstand negativelywordedquestions,andthusexcludedthesefromthefinalfactoranalysis(SchmittandStults,1985).A Horn’s (1965) parallel analysis on the remaining questions was used to determine the optimal number of compositeindexes.TheresultsaredisplayedinFigureA1intheAppendix. 9 ThisindexisaweightedaveragebasedonthequestionsdisplayedinTableA5intheappendix,whoseweights correspondtotheirfactorloadingsofaone-factormodelafterobliquerotation.Weexcludedquestionsthatdid nothaveloadingsatleast.3orhigher.Inordertoimprovetheprecisionofthemainestimatesinthispaper,we alsoexcluded3questionsthatindividuallywerenotpredictiveoftobaccofarming. normaldistribution. The questions used to construct the measure of non-cognitive skills used in the analysis and their corresponding weights are reported in Table A5 in the appendix. The first two questions measure tenacity,whichistheabilitytopersistinthepursuitofgoalsdespitedifficulty.Thenextthreequestions measureoptimism,whichistheabilitytoremainhopefulandconfidentaboutpositiveoutcomes.The sixth and seventh questions measure patience, more specifically the ability to plan and save for the future.Thelasttwoquestionsmeasurepassionforworkandorganization,respectively. Figures 1A and 1B illustrate the association between each spouse’s non-cognitive skills and tobacco adoption, obtained from nonparametric estimations. Standard error bands are presented in dashed lines.Wecanseethatthelikelihoodoftobaccoadoptionismonotonicallyincreasingwithbothspouses’ non-cognitive skills. Figure 2 illustrates the association between the spouses’ non-cognitive skills themselves.Spousesarematchedassortatively;highnon-cognitiveskillsmalesaremarriedtohighnoncognitivefemales(correlationcoefficient=0.54).Inthemainanalysisitwillthusbeimportanttocontrol forbothspouses’noncognitiveabilities.10 2.3.2.MeasuringCognitiveSkills Thepsychometricsquestionnairealsoincludedanarithmetictestandashort-termmemorytest,which weusetoconstructameasureofcognitiveabilityforeachspouse.Thearithmetictestconsistedoffour mental mathematical problems, and the short-term memory test consisted of forward and backward digit span recall tests. 11An EFA established that a single index aggregating the number of correct answerstothefourmathematicalproblems,andthemaximumnumberofdigitsrecalledineachdigit span recall test, suffices to explain the bulk of the variation in these three measures. Their Cronbach 10 Dupuy and Galichon (2014) provide evidence that personality traits play an important role in the marriage market. Specifically, using data from Dutch households, they show that sorting on personality traits explains 19 percentofthemarriagemarketequilibrium,incomparisonto26percentexplainedbyeducation. 11 Thedigitspanrecalltestisusedtomeasureworkingmemoryandhasbeenshowntobehighlycorrelatedwith IQ(e.g.Colometal,2004).Initsforwardversion,theenumeratorstartsbyreadingaloudtwothree-digitnumbers totherespondent.Afterreadingeachnumber,theenumeratoraskstherespondenttorepeatbackthenumber.If the respondent remembers at least one of numbers, the number of digits is then incremented by one and the testingcontinues,uptosevendigits.Theprocedureforthebackwardversionofthetestisessentiallythesame, withtheexceptionthatrespondentsareaskedtorecallthedigitsinbackwardorder.Thearithmetictestsconsistof thefourfollowingmentalmathproblems:(i)“Whatis20minus13?”,(ii)“Whatis200plus500?”,(iii)“Whatis3 multipliedby6”,and(iv)“Whatis400dividedby10?”. alpha’sstatisticsequals0.73forthewivesand0.71forthehusbands.Allthreemeasuresarepositively correlatedwithoneanother,andallthreeenterthecognitiveabilityindexwithsimilarweightsforboth males and females. We have also normalized the resulting cognitive ability indexes for males and femalesfollowingtheapproachusedfornoncognitiveability. Figures3Aand3Billustratetheassociationbetweenthespouses’cognitiveabilitiesandthelikelihoodof cultivatingtobacco.Wecanseethatthelikelihoodofgrowingtobaccoisnotpositivelyassociatedwith spouses’ cognitive abilities. If anything, the correlation appears to be negative for husbands. Figure 4 shows that males and females are also positively assortatively matched with respect to cognitive abilities(correlationcoefficient=0.46). 2.4.EstimatingTobaccoAdoption We estimate the following specification for household!in community ! , where!!" is an indicator variableforwhetherthehouseholdcultivatedtobaccoduringlastrainyseason,and!"#!" and!"#!" arethewife’sandhusband’snon-cognitiveskillsindexesdiscussedabove,respectively, !!" = ! + !! !"#!" + !! !"#!" + !! !!" + !! + !!" . (1) !!" includes controls for characteristics related to the wife, the husband, their household, and their farm,respectively.Spouselevelcontrolsincludethecognitiveskillsindexdescribedabove,indicatorsof literacyandhealth,age,anddummyvariablesforwhetherthespousesworkoutsidethefarmandfor whether they have migrated to the village. Household level controls include number of adults and children in the household, log value of durable assets as a proxy for wealth, number of months of adequatehouseholdfoodinthepast12monthsasaproxyforvulnerability,adummyequaltoonefor Muslim households, and measures of distance between the household and the nearest road, the nearesttobaccoauctionfloor,andthenearestagriculturalmarket.Farmlevelcontrolsincludelogfarm size,elevation,precipitation,andanindexofoverallsoilquality. Wealsoincludeenumerationareafixedeffects!! inordertocontrolforcommunitylevelfactorsthat mayaffectthecostsandbenefitsoftobaccoadoption.Suchfactorscanincludetheexistenceoftobacco clubs,auctionfloors,agriculturalmarkets,andagriculturalbasedprojects(includingextensionservices relatedtotobaccocultivationandmarketing),theavailabilityofbothfarmlaborandnon-laborinputs, non-farm employment opportunities, as well as agroecological characteristics. It also controls for cultural characteristics that can determine female participation in cash crop, such social norms, tribal, andkinshipsystems.12 The parameters of interest are!! and!! , which measure the effect size of a one-standard deviation increase in the wife’s and the male’s noncognitive abilities, respectively, on the likelihood that the householdgrowstobacco.Thestandarderrorsareadjustedforheteroskedasticityacrosshouseholds. 3.Results 3.1.TobaccoAdoption Table 3 provides our main results on how spousal noncognitive abilities correlate with household tobacco adoption. Columns 1 to 3 only control for spousal noncognitive abilities. We find that when introduced separately in Columns 1 and 2, both spouses’ noncognitive abilities are positively significantly correlated with the household propensity to grow tobacco (!! > 0and !! > 0). A one standard deviation increase in female noncognitive ability is associated with a 5.9 percentage point increase in the likelihood that the household grows tobacco (Column 1), compared to 4.8 percentage pointsformalenoncognitiveability(Column2). However, Column 3 shows that when both spouses’ noncognitive abilities are introduced jointly, only the coefficient on female noncognitive ability is significantly different than zero. In this specification, conditionalonmalenoncognitiveability,astandarddeviationincreaseinfemalenoncognitiveabilityis associated with a statistically significant 4.7 percentage point increase in the likelihood that the householdgrowstobacco.Conditionalonfemalenoncognitiveability,theestimatedeffectofastandard deviation increase in male noncognitive ability on tobacco adoption is a statistically insignificant 2.1 percentagepoints.Hencepartoftheunconditionalcorrelationbetweenmalenoncognitiveabilityand tobaccoadoptionreportedinColumn2isexplainedbythefactthathighnoncognitiveabilitymenare marriedtohighnoncognitiveabilitywomen.13 12 Relianceonwithin-communityvariationinnon-cognitiveskillsacrossneighboringhouseholdcouldfailtoidentify theeffectofspousalnon-cognitiveskillsontobaccofarmingifentirecommunitiesspecializeintobaccofarming, leaving little variation after controlling for community fixed effects. This is not the case: within-community variationintobaccofarmingissubstantial. 13 Whiletheevidenceindicatesthatspousesmatchassortativelyonnon-cognitiveskills,thespousalcorrelationin thenon-cognitiveskillsindexesisfarfromperfect,withacorrelationcoefficientof0.54.Hence,conditionalonthe InColumns4to8weaddcommunityfixedeffects,controlsrelatedtothecharacteristicsofthefarm, the household, the wife, and the husband. The sensitivity of the estimates of interest (!! and !! ) relativetothatoftheR-squaredvaluetotheinclusionofthesecontrolsisinformativeofwhetherthese estimatesarerobusttoomittedvariablebias.WefollowtheapproachdevelopedbyOster(2015)and compute bounds for the coefficients of interest in the presence of unobservables driving tobacco adoption.Thesearereportedatthebottomofeachcolumn.AscanbeenseenacrossColumns4to8, the coefficient estimates on spousal noncognitive abilities are very robust to the inclusion of these controls. The identification sets are tightly bounded, never include zero for the effect of female noncognitiveability,andalwaysincludezerofortheeffectmalenoncognitiveability.Column4to8thus provide solid evidence that our estimates are not explained by unobservables driving both tobacco adoptionandspousalnoncognitiveabilities. Our preferred specification is in Column 8 once all the controls are added. This shows that a one standarddeviationincreaseinfemalenoncognitiveabilitycorrespondstoastatisticallysignificanthigher propensitytogrowtobaccoof6.3percentagepoints.14Togaugethemagnitudeofthiscorrelationwe notethat16percentofthehouseholdsinoursamplecurrentlygrowtobacco.Hencetheincreaseof6.3 percentage points associated with a one standard deviation increase in female noncognitive ability in Column8correspondstoaabout40percentincreaseinthelikelihoodoftobaccoadoption.Incontrast, the coefficient on male noncognitive ability is statistically indistinguishable from zero. Moreover, the other coefficients in Table 3 show that female noncognitive ability is a much stronger predictor of tobaccoadoptionthantheothermeasuresofhumancapital.Conditionalonbothspouses’noncognitive abilitiesandontheothercovariates,theircognitiveabilities,literacylevels,andhealthstatushaveno impactonthelikelihoodthatthehouseholdgrowstobacco. Aremainingconcernhowever,isthattheresultscouldbedrivenbyreversecausality.Unfortunately,our datasetdoesnotaffordaplausiblesourceofexogenousvariationinspousalnoncognitiveabilitiestobe explored. Despite this caveat, our use of a rigorous factor analysis to measure noncognitive ability, extensivecontrolvariablesrelatedtocharacteristicsofthespouses,theirhouseholds,andtheirfarms, husband’s (wife’s) non-cognitive skills there is enough variation in the wife’s (husband’s) non-cognitive skills in ordertoidentifytheindependenteffectofeachspouse’snon-cognitiveskillsontobaccoadoption. 14 Strictlyspeaking,someofthecovariatesincludedinspecificationarenotgoodcandidatesforcontrolvariables. Forexample,householdwealthandvulnerabilityarelikelytobedeterminedbytobaccoadoption,anditispossible that non-cognitive skills determines literacy. Yet, their inclusion does not affect the coefficients on spousal noncognitiveskills,ourcoefficientsofinterest. aswellastheinclusionofcommunityfixedeffects,suggestthecorrelationdocumentedinthispaperis informativeofthecausaleffectofspousalnoncognitiveabilitiesontobaccoadoption. 3.2.InputUse Havingestablishedarobustlargepositivecorrelationbetweenfemalenoncognitiveabilityandtobacco adoption, we now examine whether female noncognitive ability also correlates with the use of inputs required to successfully grow tobacco, such as farm labor, fertilizer, and information about how to cultivateandselltobacco.Themotivationfordoingsoisthatwehavepreviouslyprovideddescriptive evidence that access to these inputs is positively associated with tobacco adoption (Table 1). Hence whetherfemalenoncognitiveabilityalsocorrelateswiththeseinputsprovidescomplementaryevidence insupportofourmainfindingontheimpactoffemalenoncognitiveabilityontobaccoadoption. Table4presentstheresultsfromestimatingspecificationssimilartoequation(1)above,controllingfor the same set of covariates and community fixed effects, but where the outcome is a dummy variable thatequalsoneifduringthelastrainyseasonthehousehold(i)recruitedanamountoffarmlaborabove thesamplemedianinColumn1,(ii)usedanynon-familyfarmlaborinColumn2,(iii)usedfertilizerin Column 3, (iv) received advice on how to cultivate and sell tobacco in Column 4.15The dependent variable in Column 5 is the number of farm tools owned by the household. We find that female noncognitive ability is positively correlated with the overall amount of farm labor used by the household,theuseoffertilizer,andwithwhetherthehouseholdreceivedadviceontobaccocultivation and marketing techniques. These correlations are both statistically significant and economically important.Specifically,everyadditionalstandarddeviationinfemalenoncognitiveabilityisassociated witha12percentagepointincreaseinthelikelihoodthatthehouseholdusesabovemedianfarmlabor, 6 percentage point increase in the propensity to use fertilizer, and 9 percentage point increase in the likelihoodofhavingreceivedadvice. Toprobefurther,Table5presentstheresultsfromestimatingspecification(1)abovewhereeachofthe elements of production is introduced sequentially, controlling for the same set of covariates and communityfixedeffects.Thisapproachallowsustoexaminehowsensitivethecoefficientsonspousal 15 Amonghouseholdsthatreportedtohavereceivedadviceonhowtocultivateandselltobacco,thethreemain sources of that advice were: (i) radio (58%), (ii) government agricultural extension service (21%), and (iii) neighbor/relative (10%). In rural parts of Malawi, farmers often gather in groups to listen together to radio programsonextensionandadvisoryandtodiscusswhattheyhaveheard. noncognitive abilities are to the inclusion of these variables, and thus gauge the extent to which they contribute to explain the overall effect of female noncognitive ability on tobacco adoption. At the bottomofthetablewereporttheidentifiedsetsforthetwocoefficientsofinterestusingOster’s(2015) biascorrectionapproach. TheresultsinColumns2to4indicatethatthequantityoffarmlaborrecruited,fertilizeruse,andaccess to information are all associated with a statistically and economically significant increase in the propensity to grow tobacco. Conditional on spousal noncognitive abilities and on all controls and communityfixedeffects,wefindthatthelikelihoodofgrowingtobaccois18percentagepointshigher forhouseholdsthatrecruitfarmlaborinaquantityabovethesamplemedian(Column2),17percentage points higher for households that use fertilizer (Column 3), and 13 percentage points higher for householdsthatobtainadviceabouttobaccocultivationandmarketingtechniques(Column4). Table5alsoconfirmsthattheeffectoffemalenoncognitiveontobaccoadoptionisinpartexplainedby increasedaccesstotheseinputs.Specifically,whenwecontrolforfarmlaborinColumn2,fertilizeruse in Column 3, and access to information in Column 4, the coefficient on female noncognitive ability declinesby32percent,14percent,and19percent,respectively.Becauseoftherelativelylowsample sizetheestimatedcoefficientsonfemalenoncognitiveabilityareonlystatisticallysignificantatthe10 percentlevelthroughoutColumns2to4.Howevertheyarewellabovezerointermsofmagnitude,and infactthelowerboundsoftheirsassociatedidentificationsetsarenotclosetozero.Whenwecontrol forallinputsinColumn6,thecoefficientonfemalenoncognitiveabilitydecreasesbyalmost60percent andisnolongerstatisticallysignificant. Insum,theevidenceinthissectionsuggeststhatfarmsmanagedbyhighnoncognitiveabilityfemales arebetteratsecuringcriticalinputsthatinturnenablethemtosuccessfullygrowandmarkettobacco. 3.3.MatrilocalandPatrilocalCommunities AuniqueaspectofMalawiisthatitispredominantlyamatrilinealsociety,whereinheritancefollowsthe femalelineage.16Forthatreason,womenarethoughttoenjoygreaterstatusandpowerinmatrilineal societies than in patrilineal societies, which are common across most of Africa. On the one hand it is 16 The community questionnaire administered to each of the 204 enumeration areas selected for nationally representativeIHPSsample,revealsthatmatrilinealityisthemostcommonlineofdescentin196(96%)ofthose enumerationareas. possible that matrilineality eases women’s ability influence household decisions, which would contributetoexplainthefindingthatfemalenoncognitiveabilitymattersfortobaccoadoption.17Onthe other hand, it is also possible that personality skills such as tenacity, optimism, and patience may be particularly effective for females in patrilocal societies where they face greater cultural resistance. Distinguishing between these two hypotheses is important for the external validity of our results, and thustheirpolicyrelevance. BeyondtheprevalenceofmatrilinealityinMalawi,thereissubstantialvariationacrosscommunitiesin theirculturalpracticesformarriages.Inparticular,themostcommontypeofmarriageismatrilocal(or Chikamwini) in some communities, and patrilocal (or Chitengwa) in other communities. Under matrilocality, men leave their home village to move to the village of their wives, whereas under patrilocality, the women are the ones that move to the villages of their husbands. Women residing in their home villages are likely to have greater power than women residing in their husbands’ villages, sincetheyremainclosertotheirkin.Weexploitthisvariationinmarriagerulesacrosscommunitiesto examinewhethercultureaffectsthepreviouslydocumentedcorrelationbetweenfemalenoncognitive abilityandtobaccoadoption. Inordertomeasurethedifferentialeffectoffemalenoncognitiveabilityontobaccoadoptionbetween patrilocalandmatrilocalcommunities,weestimateaspecificationsimilartoequation(1)abovewhere femalenoncognitiveabilityisinteractedwithadummythatequalsoneifthehouseholdislocatedina matrilocalcommunity,andzeroifitislocatedinapatrilocalcommunity.Sincethematrilocalitydummy is defined at the community level, and there is variation within districts in whether communities are matrilocal,wereplacecommunityfixedeffectswithdistrictfixedeffects.Thesampleusedinthissection includes all households with valid psychometric data for female farmers, irrespective of whether psychometricdataisalsoavailablefortheirhusbands.Thejustificationfordoingsopertainstothesmall size of the working sample used in the main analysis that makes it difficult to detect heterogeneous effects. The specification thus includes all previous controls except male cognitive and noncognitive abilities,whichwehavepreviouslyshownnottomatterfortobaccoadoption. Despitetheirgeographicsimilarity,patrilocalandmatrilocalcommunitieswithindistrictsmaystilldiffer on various characteristics other than culture and marriage rules. For example, patrilocal communities 17 Recent experimental evidence shows that women in matrilineal societies are more competitive that men, whereastheoppositeholdinpatrilinealsocieties(Gneezyetal,2009;Andersenetal,2013). mayhavebetter(orworse)marketconnections,oragreater(lower)historyofexposuretoagricultural extension programs. If the effect of female noncognitive ability also varies across these same characteristics, then any difference found between patrilocal and matrilocal communities may be related not to culture, but to differences in these characteristics. In order to purge our estimate of interest of the differential effect of female noncognitive ability on tobacco adoption from these confoundingeffects,weadditionallycontrolforcommunitylevelcharacteristics,bothinisolationandin interaction with female noncognitive ability. These controls include indicators for the presence in the communityofatobaccoclub,anasphaltroad,anagriculturalextensionofficer,aselleroffertilizer,and acommercialbankoranMFI. Table6presentstheresults.InColumn1weonlycontrolforfemalenoncognitiveability.Forthissample a one standard deviation increase in female noncognitive ability is associated with a 4.9 percentage point increase in the likelihood of tobacco adoption. Column 2 additionally controls for an interaction betweenthecommunitymatrilocaldummyandthefemalenoncognitiveabilitymeasure,aswellasthe directeffectofmatrilocality.Wefindastrikinglylargeandsignificantdifferentialeffectbetweenthetwo types of communities. In patrilocal communities, the effect of a one standard deviation increase in female noncognitive on the propensity to grow tobacco is a statistically significant increase of 9.1 percentage points. The effect in matrilocal communities is the sum of the interaction term and the effect in patrilocal communities, and is a precisely estimated zero. Columns 3 and 4 shows that this resultisrobusttotheinclusionofdistrictfixedeffects,aswellascontrolsrelatedtothespouses,their households, and their farms. Column 5 shows that the differential effect between patrilocal and matrilocal communities is not masking heterogeneity in the effect of female noncognitive ability with respecttootherobservablecommunitycharacteristics. In summary, the evidence in this section suggests that culture strongly affects the key pattern documented in this paper. The mean effect of female noncognitive ability on tobacco adoption is entirely driven by communities with patrilocal marriage rules. That is, we find that it is in those communitieswherewomenfacerelativelygreatersocialdisadvantage thatentrepreneurialpersonality skillssuchastenacity,optimism,patience,andpassionforwork,areparticularlyhelpful. 5.Conclusion Work on labor markets and outcomes in developed countries has shown that non-cognitive skills are important for, among other outcomes, occupational choice and earnings. And some of this work (Heckman et. al. 2006) finds that the gradient of the effect of non-cognitive skills with respect to earnings is steeper for women. We provide evidence from a rural, developing country context that is consistent with this work. Among couples in Malawi, female non-cognitive skills are significantly associatedwiththeadoptionoftobacco,ahighlyprofitablecropthatisexclusivelyproducedforselling inexportmarkets.Onemainchannelthroughwhichthesenon-cognitiveskillsseemtoworkisthrough theuseofproductiveinputsincludinghigherlevelsoflabor,fertilizerandagriculturaladviceservices. These findings have clear implications for agricultural growth and poverty reduction. The adoption of high value crops is critical for agricultural growth and economic growth more broadly. Non-cognitive skillsseemtoplayanimportantroleinadoptionandinprocuringthenecessaryinputsforsuccess.Thus, interventionsthatdeveloptheseskillsarelikelytohavesignificantpayoffsforbothhouseholdincomes andagriculturalproductivity. These findings also deepen our understanding of how gender matters for household outcomes. These are households where men and women farm together. When we control for both the husband and wife’snon-cognitiveskills,herskillsaresignificantlycorrelatedwithfarmingtobacco,whilehisarenot. Thisindicatesthatprogramsseekingtoincreaseagriculturalproductivityneedtotakeintoaccountall farmers in the household, not just the titular household head. In addition, our finding that women’s non-cognitiveskillsmatterparticularlyinpatrilocalcommunities,wherewomenareatarelativesocial disadvantagesuggeststhattheseskillsmaymattermorewhenlocalandsocialinstitutionsarestacked against women’s empowerment. A finding that is consistent with recent evidence in developed countries documenting a greater importance of non-cognitive skills for individuals with low socioeconomicbackgrounds(Carneiroetal,2011;KuhenandMelzer,2015).Giventhestructureofourdata aswellasthestructureofagriculturalproductioninMalawi,wecannotprovidedefinitiveevidencefor this,butthisindicatesanintriguingareaforfutureresearch. References [1] Almlund, M., A. L. Duckworth, J. Heckman, and T. Kautz. 2011. “Personality Psychology and Economics.” In Handbook of the Economics of Education, Vol. 4, E. Hanushek, S. Machin, and L. Woessman,eds.Amsterdam:Elsevier.pp.1-181. 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Table1.DescriptiveStatisticsonFarmCharacteristics,byTobaccoAdoptionStatus Means,standarddeviationsreportedinparentheses,p-valuesinbrackets Differencesbetweentobaccoandnon-tobacco households[p-value] (1)Mean(SD) (2)Unconditional (3)WithEA fixedeffects Logannualnetcropincome[MWK1,000perha] 3.86 (.919) .618 [.000] .707 [.000] Growsmaize[yes=1] .981 (.136) .006 [.643] .000 [.999] Numberofcrops 3.44 (2.45) .991 [.001] 1.23 [.000] Logfarmsize[hectares] .410 (.813) .746 [.000] .567 [.000] Labor[person-daysperhectare] 116.4 (106.2) -7.84 [.471] 32.5 [.023] Usesnon-familylabor[yes=1] .428 (.495) .062 [.317] .116 [.190] Usesfertilizer[yes=1] .817 (.387) .171 [.000] .232 [.000] Receivedadviceonhowtogrow/selltobacco[yes=1] .408 (.492) .443 [.000] .250 [.000] Soilquality[score=1-7] 4.90 (2.00) .335 [.071] -.212 [.032] Elevation[inmeters] 946.0 (311.1) 190.9 [.000] -.661 [.927] Totalrainfallpast12months[inmm] 856.7 (158.1) -80.2 [.000] -8.42 [.111] Notes:ThedatacomesfromtheagriculturequestionnaireoftheIHPS2013,whichwasadministeredtohouseholdswhoreportedtoownorcultivateaplot duringthe2012/13rainyseason.Thesampleusedisallhouseholdswithhusband-wifepairsintheIHPSruralsamplewithvalidnoncognitivedataforboth spouses,whichcomprises479households.Ahouseholdisselectedintoourworkingsampleifbothspousesrespondedtothepsychometricquestionnaire. Column 1 reports the mean and standard deviation of each variable on the full sample. Columns 3 reports the mean difference on each characteristic betweenhouseholdswithpsychometricdataforbothspousesandhouseholdswithpsychometricdatamissingforatleastoneofthespouses,withthepvaluesadjustedforheteroskedasticityreportedinbrackets.Column4reportsthatsamedifferenceandassociatedrobustp-valuesconditionalondistrict fixedeffects.Thevariablesoilqualityisthesumof7indicatorvariablesthatequal1ifthesoilisunconstrainedonnutrients’availability,retentioncapacity, rootingconditions,oxygenavailabilitytoroots,excesssalts,toxicity,andworkability. Table2.DescriptiveStatisticsonSpousalandHouseholdCharacteristics,byTobaccoAdoption Means,standarddeviationsreportedinparentheses,p-valuesinbrackets Differencesbetweentobaccoandnon-tobacco households[p-value] (1)Mean(SD) (2)Unconditional (3)WithEA fixedeffects 36.0 (12.9) .640 (.480) .906 (.292) .499 (.501) .183 (.387) 41.9 (14.4) .807 (.395) .929 [.257] .437 (.497) .368 (.483) 2.89 (1.24) 2.82 (1.67) .074 (.262) 8.68 (2.73) 10.2 (2.02) 4.17 (.911) 1.86 (.782) 2.98 (.790) 3.41 (.810) 2.77 [.088] -.036 [.556] .034 [.285] .071 [.253] -.125 [.001] 2.53 [.152] -.079 [.141] .038 [.143] -.102 [.088] -.144 [.009] .038 [.799] .215 [.248] .004 [.912] .453 [.124] .265 [.272] -.009 [.929] .105 [.210] .245 [.001] .126 [.093] 3.49 [.113] -.014 [.858] -.011 [.772] .040 [.627] -.110 [.016] 3.54 [.118] -.025 [.742] .019 [.504] -.047 [.499] -.085 [.226] .058 [.759] .146 [.593] -.009 [.299] 1.20 [.019] .470 [.130] .002 [.970] .088 [.204] .059 [.212] -.022 [.452] PanelA.Wifecharacteristics Age Literate[yes=1] Healthy[yes=1] Migratedtovillage[yes=1] Engagedinoff-farmwork[yes=1] PanelB.Husbandcharacteristics Age Literate[yes=1] Healthy[yes=1] Migratedtovillage[yes=1] Engagedinoff-farmwork[yes=1] PanelC.Householdcharacteristics Numberofadults Numberofchildren Muslim[yes=1] Valueofdurableassets[inlogsofMWK] Numberofmonthsoffoodsecurity Distancetonearesttobaccoauctionfloor[inlogs] DistancetonearestADMARCoutlet Distancetonearestagriculturalmarket Distancetonearestpopulationcenterwith>20,000 individuals[inlogs] Notes: ThedatacomesthehouseholdquestionnaireoftheIHPS2013.Thesampleusedisallhouseholdswithhusband-wifepairsintheIHPSruralsample withvalidnoncognitivedataforbothspouses,whichcomprises479households.Ahouseholdisselectedintoourworkingsampleifbothspousesresponded to the psychometric questionnaire. Column 1 reports the mean and standard deviation of each variable on the full sample. Columns 3 reports the mean differenceoneachcharacteristicbetweenhouseholdswithpsychometricdataforbothspousesandhouseholdswithpsychometricdatamissingforatleast oneofthespouses,withthep-valuesadjustedforheteroskedasticityreportedinbrackets.Column4reportsthatsamedifferenceandassociatedrobustpvaluesconditionalondistrictfixedeffects. Table3:SpousalNoncognitiveSkillsandTobaccoAdoption Dependentvariable=1ifhouseholdgrowstobacco,=0otherwise OLSestimates,standarderrorsreportedinparentheses .059*** (.015) .048*** (.016) (2)Husband only .021 (.018) .047*** (.018) (3)Both spouses -.001 (.022) .052** (.024) (4)EAfixed effects .007 (.021) .057** (.024) (5)Farm controls .006 (.021) .060** (.025) (6)Household controls .063 (.062) -.016 (.061) -.020 (.026) .008 (.022) .067*** (.026) (7)Wife controls Yes Yes Yes Yes Yes [.063,.065] [.002,.012] .505 479 .061 (.071) -.049 (.062) -.042 (.029) .066 (.065) .005 (.062) -.006 (.026) .012 (.023) .063** (.030) (8)Husband controls Controls Yes Yes Yes Yes No [.067,.069] [-.004,.008] .494 479 Husband’snoncognitiveskills Yes Yes Yes No No [.060,.061] [-.007,.006] .481 479 Unconditional Wife’scognitiveability Yes Yes No No No [.057,.057] [-.006,.007] .468 479 Wifeisliterate[yes=1] Yes No No No No [.049,.052] [-.017,-.001] .420 479 Wifeishealthy[yes=1] (1)Wifeonly Husband’scognitiveability No No No No No .026 479 Husbandisliterate[yes=1] No No No No No .016 479 Wife’snoncognitiveskills Husbandishealthy[yes=1] No No No No No .024 479 EAfixedeffects Farmcontrols Householdcontrols Wifecontrols Husbandcontrols Identifiedset[Oster2015biascorrection]: Wifenoncognitiveability Husbandnoncognitiveability R-squared Observations Notes:***denotessignificanceat1%level,**at5%level,*and10%level.Standarderrorsadjustedforheteroskedasticity.Thesampleusedisallhouseholdswithhusband-wifepairsinthe IHPS rural sample with valid noncognitive data for both spouses. Each column corresponds to a separate regression. The dependent variable in all columns is a dummy that equals 1 if household grows tobacco, and 0 otherwise. Column 1 only controls for the wife’s noncognitive skills. Column 2 only controls for husband’s noncognitive skills. Column 3 controls for both spouses’ noncognitive skills. Column 4 further controls for enumeration area fixed effects. Columns 5 to 8 further sequentially control for farm, household, wife, and husband level characteristics.Farmcontrolsincludelogfarmsize,elevation,totalrainfall,andanindexofsoilqualitythatequalsthesumof7dummyvariablesthatequal1ifthesoilisunconstrainedon nutrients’availability,retentioncapacity,rootingconditions,oxygenavailabilitytoroots,excesssalts,toxicity,andworkability.Householdcontrolsincludenumberofadultsandchildreninthe household,adummyequalto1ifthehouseholdisMuslim,logvalueofdurableassets,numberofmonthsinthepast12monthswithsufficienthouseholdfood,anddistancesbetweenthe householdandthenearesttobaccoauctionfloor,ADMARC,agriculturalmarket,populationcenterwithatleast20,000individuals.Wifeandhusbandlevelcontrolsincludeforeachspousethe normalizedindexofcognitiveability,adummythatequals1ifthespouseisliterate,ahealthindicatorthatequals1ifthespousereportsnotbechronicallyill,age,amigrantdummythat equals1ifthespousehasmigratedtothevillage,andadummyequalto1ifthespouseengagedinoff-farmworkduringthepast12months. Table4:SpousalNoncognitiveSkillsandInputUse EAfixedeffects Meanofdependentvariable Yes Yes .500 .119*** (.040) -.021 (.032) (1)Farmlabor abovemedian (yes=1) .523 Yes Yes .428 -.030 (.037) .012 (.031) (2)Anynonfamilylabor (yes=1) 479 .463 Yes Yes .816 .058** (.030) -.014 (.028) (3)Fertilizer (yes=1) 479 .601 Yes Yes .412 .089*** (.033) .063** (.028) (4)Advice (yes=1) 479 .525 Yes Yes 6.79 .435 (.296) .210 (.256) (5)FarmTools OLSestimates,standarderrorsreportedinparentheses Controls(farm,household,wife,husband) .519 479 R-squared 479 Husband’snoncognitiveskills Wife’snoncognitiveskills Observations Notes: *** denotes significance at 1% level, ** at 5% level, * and 10% level. Standard errors adjusted for heteroskedasticity. The sample used is all households with husband-wifepairsintheIHPSruralsamplewithvalidnoncognitivedataforbothspouses.Eachcolumncorrespondstoaseparateregression.Thedependentvariablein Columns 1 to 4 are dummy variables that equal 1 if during the last rainy season the household used above-median farm labor (Column 1), any nonfamily family labor (Column 2), fertilizer (Column 3), and received advice on how to cultivate and sell tobacco (Column 4). The dependent variable in Column 5 is the sum of 8 dummies indicating household ownership of the following 8 farm tools: hoe, slasher, axe, sprayer, panga knife, stickle, treadle pump, and watering can. All columns control enumerationareafixedeffects,andthefullsetofcontrolsforcharacteristicsrelatedtothefarm,thehousehold,thewife,andthehusband.Farmcontrolsincludelogfarm size, elevation, total rainfall, and an index of soil quality that equals the sum of 7 dummy variables that equal 1 if the soil is unconstrained on nutrients’ availability, retentioncapacity,rootingconditions,oxygenavailabilitytoroots,excesssalts,toxicity,andworkability.Householdcontrolsincludenumberofadultsandchildreninthe household, a dummy equal to 1 if the household is Muslim, log value of durable assets, number of months in the past 12 months with sufficient household food, and distances between the household and the nearest tobacco auction floor, ADMARC, agricultural market, population center with at least 20,000 individuals. Wife and husbandlevelcontrolsincludeforeachspousethenormalizedindexofcognitiveability,adummythatequals1ifthespouseisliterate,ahealthindicatorthatequals1if thespousereportsnotbechronicallyill,age,amigrantdummythatequals1ifthespousehasmigratedtothevillage,andadummyequalto1ifthespouseengagedinofffarmworkduringthepast12months. Table5.SpousalNoncognitiveSkillsandTobaccoAdoption,ConditionalonInputUse Adviceonhowtocultivate/selltobacco[yes=1] Fertilizer[yes=1] Anynon-familylabor[yes=1] Farmlaborabovemedian[yes=1] Malenoncognitiveskills Femalenoncognitiveskills .012 (.023) (1) .063** (.030) Yes Yes .532 [.038,.043] [.006,.016] 479 .002 (.046) .175*** (.044) .016 (.023) (2) .043* (.027) Yes Yes .521 [.052,.054] [.005,.015] 479 .166*** (.050) .015 (.023) (3) .054** (.026) Yes Yes .519 [.048,.051] [-.010,.004] 479 .130*** (.051) .004 (.023) (4) .051* (.027) Yes Yes .505 [.064,.065] [.002,.012] 479 -.000 (.004) .012 (.024) (5) .063** (.027) Yes Yes .554 [.015,.026] [-.001,.010] 479 .001 (.004) .119** (.050) .147*** (.051) -.029 (.047) .147*** (.044) .010 (.023) (6) .026 (.025) Dependentvariable=1ifhouseholdcultivatestobacco,0otherwise Linearprobabilitymodelestimates,robuststandarderrorsreportedinparentheses Farmtools Yes Yes .522 479 EAfixedeffects Controls(farm,household,wife,husband) R-squared Identifiedset[Oster2015biascorrection]: Wifenoncognitiveability Husbandnoncognitiveability Observations Notes:***denotessignificanceat1%level,**at5%level,*and10%level.Standarderrorsadjustedforheteroskedasticity.ThesampleusedisallhouseholdswithhusbandwifepairsintheIHPSruralsamplewithvalidnoncognitivedataforbothspouses.Eachcolumncorrespondstoaseparateregression.Thedependentvariableinallcolumnsisa dummythatequals1ifhouseholdgrowstobacco,and0otherwise.Allcolumnscontrolenumerationareafixedeffects,andthefullsetofcontrolsforcharacteristicsrelatedto thefarm,thehousehold,thewife,andthehusband.Farmcontrolsincludelogfarmsize,elevation,totalrainfall,andanindexofsoilqualitythatequalsthesumof7dummy variables that equal 1 if the soil is unconstrained on nutrients’ availability, retention capacity, rooting conditions, oxygen availability to roots, excess salts, toxicity, and workability.Householdcontrolsincludenumberofadultsandchildreninthehousehold,adummyequalto1ifthehouseholdisMuslim,logvalueofdurableassets,numberof months in the past 12 months with sufficient household food, and distances between the household and the nearest tobacco auction floor, ADMARC, agricultural market, populationcenterwithatleast20,000individuals.Wifeandhusbandlevelcontrolsincludeforeachspousethenormalizedindexofcognitiveability,adummythatequals1if thespouseisliterate,ahealthindicatorthatequals1ifthespousereportsnotbechronicallyill,age,amigrantdummythatequals1ifthespousehasmigratedtothevillage, andadummyequalto1ifthespouseengagedinoff-farmworkduringthepast12months. Table6.HeterogeneousImpactsofFemaleNoncognitiveSkillsRelatedtoCommunityCharacteristics Districtfixedeffects MatrilocalCommunity Wife’snoncognitiveskillsXMatrilocalCommunity No No .049*** (.012) (1)Baseline No No No -.101*** (.024) -.088*** (.024) .091*** (.017) (2)Matrilocal .157 No No Yes -.052 (.033) -.061*** (.024) .075*** (.019) (3)Districtfixed effects .227 No Yes Yes -.038 (.033) -.056** (.024) .068*** (.019) (4)Controls 758 .248 Yes Yes Yes -.017 (.035) -.053** (.026) .141** (.068) (5)Other heterogeneity Dependentvariable=1ifhouseholdcultivatestobacco,=0otherwise OLSestimates,standarderrorsreportedinparentheses Controls(farm,household,wife,husband) No .056 758 Heterogeneousimpactrelatedtocommunitycharacteristics .019 758 Wife’snoncognitiveskills R-squared 758 758 Observations Notes:***denotessignificanceat1%level,**at5%level,*and10%level.Standarderrorsadjustedforheteroskedasticity.ThesampleusedisallhouseholdswithhusbandwifepairsintheIHPSruralsamplewithvalidnoncognitivedataforthewife.Eachcolumncorrespondstoaseparateregression.Thedependentvariableinallcolumnsisa dummythatequals1ifhouseholdgrowstobacco,and0otherwise.Column1onlycontrolsforthewife’snormalizedmeasureofnoncognitiveability.Column2controlsfor (bothinisolationandininteraction)thewife’snormalizedmeasureofnoncognitiveability,andadummythatequals1ifthemostcommonmarriagetypeinthecommunityis matrilocal,and0ifpatrilocal.Column3addsdistrictfixedeffects.Column4addscontrolsrelatedtothecharacteristicsofthefarm,thehousehold,thewife,andthehusband. Column 5 adds the community level controls, both in isolation and interaction with female noncognitive ability. The community level controls include log population, and indicatorvariableforwhetherornotcommunitymembersareexpectedtopaytothevillageheadmaneverytimetheybuy/sellland,and5dummyvariablesthatequal1ifthe followingarepresentinthecommunity:tobaccoclub,commercialbankorMFI,fertilizerdealer,andanagriculturalextensionofficer 0 Probability household grows tobacco .1 .2 .3 .4 Figure1A:FemaleNoncognitiveSkillsandTobaccoAdoption -2 -1 0 Female noncognitive ability 1 2 0 Probability household grows tobacco .1 .2 .3 .4 Figure1B:MaleNoncognitiveSkillsandTobaccoAdoption -2 -1 0 Male noncognitive ability 1 2 Notes: Each figure plots predicted values from a Kernel-weighted locally weighted regression of an indicator variable that equals one if the household produces tobacco on the corresponding spouse’s noncognitive skills index smoothed with a (Epanechnikov) kernel regression. Both ability measures have been truncated at +/−2 standarddeviations.Dashedlinesrepresent95%confidenceintervals. Figure2:PositiveAssortativeMatingonNoncognitiveSkills -1 Female noncognitive ability -.5 0 .5 1 -2 -1 0 Male noncognitive ability 1 2 Notes: The figure plots predicted values from a Kernel-weighted locally weighted regression of the wife’s noncognitiveskillsonthehusband’snoncognitiveskillsindexsmoothedwitha(Epanechnikov)kernelregression. Thehusband’snoncognitiveabilityhasbeentruncatedat+/−2standarddeviations.Dashedlinesrepresent95% confidenceintervals. Figure3A:FemaleCognitiveAbilityandTobaccoAdoption 0 Probability household grows tobacco .1 .2 .3 .4 -2 -1 0 Female cognitive ability 1 2 0 Probability household grows tobacco .1 .2 .3 .4 Figure3B:MaleCognitiveAbilityandTobaccoAdoption -2 -1 0 Male cognitive ability 1 2 Notes: Each figure plots predicted values from a Kernel-weighted locally weighted regression of an indicator variable that equals one if the household produces tobacco on the corresponding spouse’s cognitive ability index smoothed with a (Epanechnikov) kernel regression. Both ability measures have beentruncatedat+/−2standarddeviations.Dashedlinesrepresent95%confidenceintervals. Figure4:PositiveAssortativeMatingonCognitiveAbilities -1 Female cognitive ability -.5 0 .5 1 -2 -1 0 Male cognitive ability 1 2 Notes:ThefigureplotspredictedvaluesfromaKernel-weightedlocallyweightedregressionofthewife’s cognitive ability on the husband’s ncognitive ability index smoothed with a (Epanechnikov) kernel regression. The husband’s cognitive ability has been truncated at +/−2 standard deviations. Dashed lines represent95%confidenceintervals. TableA1.SampleSelectiononCommunityCharacteristics Means,standarddeviationsreportedinparentheses,p-valuesinbrackets Differencesbetweenhouseholdswith psychometricdataforbothspousesand householdswithpsychometricdatamissingforat leastoneofthespouses[p-values] (1)Mean(SD) (2)Unconditional (3)Withdistrict fixedeffects Matrilocal[yes=1] .485 (.500) -.256 [.000] -.040 [.083] Population[inlogs] 7.90 (1.28) .138 [.316] -.007 [.928] Asphaltedroad[yes=1] .208 (.406) .070 [.077] .054 [.028] Tobaccoclub[yes=1] .310 (.463) .148 [.002] .025 [.412] CommercialbankorMFI[yes=1] .173 (.378) -.043 [.031] -.016 [.503] Fertilizerdealer[yes=1] .212 (.409) .067 [.104] .021 [.504] Agriculturalextensionofficer[yes=1] .379 (.485) .137 [.004] -.004 [.897] Villageheadmantaxeslandtransactions[yes=1] .269 (.443) -.013 [.739] .004 [.870] Notes:ThedatacomesfromthecommunityquestionnaireoftheIHPS2013,whichdefinesa“community”byavillageorgroupofvillagesinruralareas thatarefoundwithinthecorrespondingenumerationarea,andwhichshouldberepresentativeoftheenumerationareasasawhole.Thesampleusedis allhouseholdswithhusband-wifepairsintheIHPSruralsamplewithvaliddataforalltheremainingvariablesusedintheanalysis.Thissamplecomprises 1,794 households, 446 of which are part of our working sample. A household is selected into our working sample if both spouses responded to the psychometric questionnaire. Column 1 reports the mean and standard deviation of each variable on the full sample. Columns 3 reports the mean difference on each characteristic between households with psychometric data for both spouses and households with psychometric data missing for at least one of the spouses, with the associated p-values clustered at the enumeration area level reported in brackets. Column 4 reports that same differenceandassociatedrobustp-valuesconditionalondistrictfixedeffects.Thefirstvariableisdummythatequals1forcommunitieswherethemost commonformofmarriageismatrilocal,and0ifpatrilocal.Thesecondvariableisthesizeofthepopulationinthecommunitymeasuredinlogs.Thethird variableisadummythatequals1ifthesurfaceofthemainaccessroadinthecommunitiesistar/asphalt.Thefourthtoseventhvariablesareindicators forwhetheratobaccoclub,acommercialbankorMFI,afertilizerdealer,andanagriculturalextensionofficerarepresentinthecommunity,respectively. Thelastvariableisadummythatequals1ifthecommunitymembersexpectedtopaytothevillageheadmanwhentheybuyorsellland. TableA2.SampleSelectiononFarmCharacteristics Means,standarddeviationsreportedinparentheses,p-valuesinbrackets Differencesbetweenhouseholdswith psychometricdataforbothspousesand householdswithpsychometricdatamissingforat leastoneofthespouses[p-values] (1)Mean(SD) (2)Unconditional (3)WithEA fixedeffects Logannualnetcropincome[MWK1,000perha]* 3.78 (1.07) .110 [.034] -.012 [.838] Growstobacco[yes=1] .139 (.346) .028 [.136] .016 [.439] Growsmaize[yes=1] .965 (.183) .021 [.008] .007 [.408] Numberofcrops 3.35 (2.19) .121 [.323] .317 [.016] Farmsize[hectares] 2.80 (18.6) -1.00 [.076] -.740 [.195] Labor[person-daysperhectare] 124.4 (269.6) -10.6 [.254] -22.4 [.256] Usesnon-familylabor[yes=1] .392 (.488) .048 [.062] .055 [.067] Usesfertilizer[yes=1] .799 (.401) .028 [.228] .024 [.249] Receivedadviceonhowtogrow/selltobacco[yes=1] .306 (.461) .135 [.000] .106 [.000] Soilquality[score=1-7] 5.18 (1.63) -.370 [.000] -.097 [.113] Elevation[inmeters] 925.0 (326.4) 27.8 [.094] -.614 [.936] Totalrainfallpast12months[inmm] 829.4 (119.0) 36.3 [.000] 4.01 [.236] Notes:ThedatacomesfromtheagriculturequestionnaireoftheIHPS2013,whichwasadministeredtohouseholdswhoreportedtoownorcultivateaplot duringthe2012/13rainyseason.Thesampleusedisallhouseholdswithhusband-wifepairsintheIHPSruralsamplewithvaliddataforalltheremaining variables used in the analysis. This sample comprises 1,895 households, 479 of which are part of our working sample. A household is selected into our workingsampleifbothspousesrespondedtothepsychometricquestionnaire.Column1reportsthemeanandstandarddeviationofeachvariableonthe fullsample.Columns3reportsthemeandifferenceoneachcharacteristicbetweenhouseholdswithpsychometricdataforbothspousesandhouseholds withpsychometricdatamissingforatleastoneofthespouses,withthep-valuesadjustedforheteroskedasticityreportedinbrackets.Column4reports thatsamedifferenceandassociatedrobustp-valuesconditionalondistrictfixedeffects.Thevariablesoilqualityisthesumof7indicatorvariablesthat equal1ifthesoilisunconstrainedonnutrients’availability,retentioncapacity,rootingconditions,oxygenavailabilitytoroots,excesssalts,toxicity,and workability. TableA3.SampleSelectiononSpousalandHouseholdCharacteristics Means,standarddeviationsreportedinparentheses,p-valuesinbrackets Differencesbetweenhouseholdswithpsychometric dataforbothspousesandhouseholdswith psychometricdatamissingforatleastoneofthe spouses[p-values] (1)Mean(SD) (2)Unconditional (3)WithEA fixedeffects 35.6 (13.3) .621 (.485) .921 (.270) .540 (.498) .184 (.388) 41.7 (14.7) .789 (.408) .920 (.271) .496 (.500) .368 (.482) 2.85 (1.20) 2.71 (1.66) .144 (.351) 8.68 (1.59) 10.1 (2.04) 4.03 (.934) 1.83 (.749) 2.95 (.813) 3.27 (.863) -.456 [.506] .026 [.308] -.019 [.209] -.087 [.036] .002 [.923] .207 [.786] .023 [.276] .012 [.372] -.079 [.003] -.000 [.985] .060 [.347] .145 [.099] -.092 [.000] .003 [.982] .106 [.321] .183 [.000] .038 [.350] .047 [.259] .179 [.000] -1.72 [.039] -.023 [.421] -.029 [.098] -.087 [.003] -.024 [.319] 1.71 [.067] -.006 [.813] .005 [.775] -.057 [.049] .015 [.618] .073 [.325] .019 [.853] .001 [.912] .110 [.522] .093 [.135] .059 [.118] .050 [.116] .036 [.297] .055 [.116] PanelA.Wifecharacteristics Age Literate[yes=1] Healthy[yes=1] Migratedtovillage[yes=1] Engagedinoff-farmwork[yes=1] PanelB.Husbandcharacteristics Age Literate[yes=1] Healthy[yes=1] Migratedtovillage[yes=1] Engagedinoff-farmwork[yes=1] PanelC.Householdcharacteristics Numberofadults Numberofchildren Muslim[yes=1] Valueofdurableassets[inlogsofMWK] Numberofmonthsoffoodsecurity Distancetonearesttobaccoauctionfloor[inlogs] DistancetonearestADMARCoutlet Distancetonearestagriculturalmarket Distancetonearestpopulationcenterwith+20,000 [inlogs] Notes:ThedatacomesthehouseholdquestionnaireoftheIHPS2013.Thesampleusedisallhouseholdswithhusband-wifepairsintheIHPSruralsamplewith valid data for all the remaining variables used in the analysis. This sample comprises 1,794 households, 446 of which are part of our working sample. A household is selected into our working sample if both spouses responded to the psychometric questionnaire. Column 1 reports the mean and standard deviationofeachvariableonthefullsample.Columns3reportsthemeandifferenceoneachcharacteristicbetweenhouseholdswithpsychometricdatafor bothspousesandhouseholdswithpsychometricdatamissingforatleastoneofthespouses,withthep-valuesadjustedforheteroskedasticityreportedin brackets.Column4reportsthatsamedifferenceandassociatedrobustp-valuesconditionalondistrictfixedeffects. TableA4.EntrepreneurialPsychologySurveyQuestions 1.Iplantaskscarefully 2.Imakeupmymindquickly 3.Isaveregularly 4.IlookforwardtoreturningtomyworkwhenIamawayfromwork 5.IcanthinkofmanytimeswhenIpersistedwithworkwhenothersquit 6.Icontinuetoworkonhardprojectsevenwhenotheropposeme 7.Iwouldliketojuggleseveralactivitiesatthesametime 8.Iwouldrathercompleteanentireprojecteverydaythancompletepartsofseveralprojects 9.Ibelieveitisbesttocompleteonetaskbeforebeginninganother 10.Itisdifficulttoknowwhomyrealfriendsare 11.InevertryanythingthatIamnotsureof 12.Apersoncangetrichbytakingrisks 13.ItisimportantformetodowhateverI'mdoingaswellasIcanevenifitisn'tpopularwithpeoplearoundme 14.Partofmyenjoymentindoingthingsisimprovingmypastperformance 15.WhenagroupIbelongtoplansanactivity,Iwouldratherdirectmyselfthanjusthelpoutandhavesomeone elseorganizeit 16.ItryharderwhenI'mincompetitionwithotherpeople 17.Itisimportanttometoperformbetterthanothersonatask 18.Ienjoyplanningthingsanddecidingwhatotherpeopleshoulddo 19.Ifindsatisfactioninhavinginfluenceoverothers 20.Iliketohavealotofcontrolovertheeventsaroundme 21.Themostimportantthingsthathappensinlifeinvolveswork 22.MyfamilyandfriendswouldsayIamaveryorganizedperson 23.InuncertaintimesIusuallyexpectthebest 24.Ifsomethingcangowrongforme,itwill 25.I'malwaysoptimisticaboutmyfuture 26.Ihardlyeverexpectthingstogoonmyway 27.Irarelycountongoodthingshappeningtome 28.OverallIexpectmoregoodthingstohappentomethanbad Notes:Responsestoallquestionsareonafive-pointscale,withoneindicating“stronglydisagree”andfive“stronglydisagree”. TableA5.FactorLoadingsofaOne-FactorModelAfterObliqueRotation (1)Females (2)Males IcanthinkofmanytimeswhenIpersistedwithworkwhenothersquit .615 .574 Icontinuetoworkonhardprojectsevenwhenotheropposeme .595 .544 InuncertaintimesIusuallyexpectthebest .439 .427 I'malwaysoptimisticaboutmyfuture .407 .342 OverallIexpectmoregoodthingstohappentomethanbad .331 .367 Iplantaskscarefully .441 .482 Isaveregularly .339 .268 IlookforwardtoreturningtomyworkwhenIamawayfromwork .419 .510 MyfamilyandfriendswouldsayIamaveryorganizedperson .495 .459 Cronbach’salphastatistic .712 .694 Notes:Factorloadingsbasedontheexploratoryfactoranalysiswithdirectquartiminrotationareshown. FigureA1.Horn’sParallelAnalysis 0 1 Eigenvalue 2 3 4 (a)Husbands 0 5 Observed 10 Number of factors Adjusted 15 Random 0 1 Eigenvalue 2 3 4 (b)Females 0 5 Observed 10 Number of factors Adjusted 15 Random Notes: Eigenvalues adjusted for sampling error were computed using 5,000 randomly generated datasets with the same th numberofquestionsandobservationsasouroriginalsample.Theycorrespondtothe95 percentileeigenvaluesfromthe randomdata.Forbothmaleandfemalemanagers,wecanseethatonlytheeigenvalueassociatedwiththefirstfactoris substantially above one. The next two largest eigenvalues are just marginally above one. Furthermore weak- and crossloadingproblem.
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