resulting negative coefficient of -0.67), thus showing evidence of convergence towards
the average for such households. This observation is plausible given the low returns to
agriculture in the low potential areas and the fact that reduction of income persistence in
such areas may only be realized through access to the off-farm labor market, whose entry
may require more education and training beyond what a secondary school education may
offer. As expected, households in the high potential areas seem to recover from shocks
with or without college training. However, those with college training tend to recover
faster (coefficient of -1.14) from such income shocks than do their counterparts without
this training.
21
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