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Management response to the demands of global fresh fruit markets: Rewarding harvesters with financial incentives

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Author Info
Sutti Ortiz
Susana Aparicio
Abstract

Competition in global fresh fruit markets is now much more intense than a decade ago. Producers and exporters face an increasing number of quality requirements and regulations that are costly and challenge established practices: paying harvesters by the amount they harvest and trying to control quality with sanctions. Based on a field study, this article discusses how lemon producers in northern Argentina are responding to these challenges; why some have responded only by introducing non-contractual innovations, while others by rewarding harvesters for careful performance to insure fruit quality. The findings elucidate arguments about the instrumentality of transaction costs on the choice of both managerial practices and forms of remunerating labourers. It also illustrates that added quality demands of foreign markets eased the task of harvesters, but had a varying effect on labourers' income.

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Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 3 (April)
Pages: 446-468
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Handle: RePEc:taf:jdevst:v:42:y:2006:i:3:p:446-468

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  1. Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November. [Downloadable!] (restricted)
  2. James A. Roumasset, 1993. "The Nature of the Agricultural Firm," Working Papers 199317, University of Hawaii at Manoa, Department of Economics.
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  3. Charles Brown, 1990. "Firms' choice of method of pay," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 43(3), pages 165-182, February.
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  4. Roumasset, James & Uy, Marilou, 1980. "Piece rates, time rates, and teams : Explaining patterns in the employment relation," Journal of Economic Behavior & Organization, Elsevier, vol. 1(4), pages 343-360, December. [Downloadable!] (restricted)
  5. Joesph E. Stiglitz, 1975. "Incentives, Risk, and Information: Notes Towards a Theory of Hierarchy," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 552-579, Autumn. [Downloadable!] (restricted)
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