21 



CAUSE OF THE IRREGULARITY IN TABLE H-B. 



Labor income is the combined result of all the factors of success 

 mentioned a few pages back. One of these factors is magnitude 

 of business, in which the size of the farm is an element. Hence, 

 in these two tables we are studying the relation between one of the 

 elements of magnitude of business on the one hand and the com- 

 bined effect of all the factors of success on the other. 



In Table II-A the farms are arranged to display the variations 

 in size of farm; the last line of the table shows the resulting varia- 

 tions in labor income. The question arises whether these varia- 

 tions in labor income are due entirely to variations in size of farm. 



We may assume that variation in size of farm causes variations 

 in labor income, but what has become of the influence on labor 

 income of tenure, type of farming, and the various factors of effi- 

 ciency that the variations in the table should be wholly due to size 

 of farm? Let us study each of these factors separately. 



Type of tenure. Since the type of tenure is more or less related 

 to size of farm, when a number of farms are grouped on size the 

 various forms of tenure do not distribute themselves at random in 

 the various size groups; tenant laborer farms will generally be 

 found in the groups of smaller farms, share tenant farms in the 

 groups of larger farms, etc. Now the form of tenure has some effect 

 on labor income. Hence variations in labor income due to differ- 

 ence in form of tenure are not eliminated, since they are not alike 

 in each size group. In Table I I-A this difficulty has been overcome 

 by using only farms of the same type of tenure. This is, in general, 

 the way of getting around this particular difficulty. If desired, a 

 similar study can be made of each type of tenure. 



Type of farming. There is more or less tendency for small 

 farms to be devoted to the more intensive types of farming and 

 large farms to the more extensive. Also, the more intensive the 

 type, the higher the labor income on the average for farms of similar 

 size. Therefore, unless the farms in each group are similar in 

 degree of intensiveness, the difference will tend to make the labor 

 income higher in the groups of small farms and lower in the others. 

 This difficulty was here overcome by using in both these tables only 

 farms of approximately the same type. This would not have been 



