IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v68y2015icp19-29.html
   My bibliography  Save this article

Diversification and Labor Market Effects of the Mexican Coffee Crisis

Author

Listed:
  • Padrón, Benigno Rodríguez
  • Burger, Kees

Abstract

This paper analyses how coffee-producing households responded to the low coffee prices prevailing around 2003. We provide theory on differential responses in regions dedicated to coffee growing, compared to more diversified or better accessible regions. We show how labor market effects can explain why in the former regions value-adding activities (processing, certification) are undertaken while in the latter regions off-farm activities are adopted. Farm size favors value-adding activities as well as on-farm diversification. These findings call for policy responses to low prices that distinguish between specialized regions and diversified or well-connected regions.

Suggested Citation

  • Padrón, Benigno Rodríguez & Burger, Kees, 2015. "Diversification and Labor Market Effects of the Mexican Coffee Crisis," World Development, Elsevier, vol. 68(C), pages 19-29.
    • Handle: RePEc:eee:wdevel:v:68:y:2015:i:c:p:19-29
    DOI: 10.1016/j.worlddev.2014.11.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14003544
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2014.11.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    2. Barham, Bradford L. & Callenes, Mercedez & Gitter, Seth & Lewis, Jessa & Weber, Jeremy, 2011. "Fair Trade/Organic Coffee, Rural Livelihoods, and the "Agrarian Question": Southern Mexican Coffee Families in Transition," World Development, Elsevier, vol. 39(1), pages 134-145, January.
    3. Allen Blackman & Heidi J. Albers & Beatriz ávalos-Sartorio & Lisa Crooks Murphy, 2008. "Land Cover in a Managed Forest Ecosystem: Mexican Shade Coffee," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 216-231.
    4. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    5. Avalos-Sartorio, Beatriz, 2006. "What can we learn from past price stabilization policies and market reform in Mexico?," Food Policy, Elsevier, vol. 31(4), pages 313-327, August.
    6. Meike Wollni & Manfred Zeller, 2007. "Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica1," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 243-248, September.
    7. Hallie Eakin & Catherine Tucker & Edwin Castellanos & Rafael Diaz-Porras & Juan Barrera & Helda Morales, 2014. "Adaptation in a multi-stressor environment: perceptions and responses to climatic and economic risks by coffee growers in Mesoamerica," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(1), pages 123-139, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phan Thi Thuy & Le Duc Niem & Thi Minh Hop Ho & Philippe Burny & Philippe Lebailly, 2018. "Economic Analysis of Perennial Crop Systems in Dak Lak Province, Vietnam," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    2. Cabral, René & Mollick, André Varella, 2017. "Mexican real wages and the U.S. economy," Economic Modelling, Elsevier, vol. 64(C), pages 141-152.
    3. Nicod, T. & Bathfield, B. & Bosc, P.-M. & Promkhambut, A. & Duangta, K. & Chambon, B., 2020. "Households' livelihood strategies facing market uncertainties: How did Thai farmers adapt to a rubber price drop?," Agricultural Systems, Elsevier, vol. 182(C).
    4. Diego Valbuena & Julien G. Chenet & Daniel Gaitán-Cremaschi, 2021. "Options to Support Sustainable Trajectories in a Rural Landscape: Drivers, Rural Processes, and Local Perceptions in a Colombian Coffee-Growing Region," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    5. Jezeer, Rosalien E. & Santos, Maria J. & Boot, René G.A. & Junginger, Martin & Verweij, Pita A., 2018. "Effects of shade and input management on economic performance of small-scale Peruvian coffee systems," Agricultural Systems, Elsevier, vol. 162(C), pages 179-190.
    6. Véronique Sophie Ávila-Foucat & Daniel Revollo-Fernández & Carolina Navarrete, 2021. "Determinants of Livelihood Diversification: The Case of Community-Based Ecotourism in Oaxaca, Mexico," Sustainability, MDPI, vol. 13(20), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pace, Noemi & Sebastian, Ashwini & Daidone, Silvio & Dela O Campos, Ana Paula & Prifti, Ervin & Davis, Benjamin, 2022. "Cash transfers’ role in improving livelihood diversification strategies and well-being: short- and medium-term evidence from Zimbabwe," World Development, Elsevier, vol. 154(C).
    2. Vellema, W. & Buritica Casanova, A. & Gonzalez, C. & D’Haese, M., 2015. "The effect of specialty coffee certification on household livelihood strategies and specialisation," Food Policy, Elsevier, vol. 57(C), pages 13-25.
    3. Donovan, Jason & Poole, Nigel, 2016. "Changing asset endowments and smallholder participation in higher-value markets: Evidence from certified-coffee producers in Nicaragua," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 3, pages 93-126, International Food Policy Research Institute (IFPRI).
    4. Rahwa Kidane & Thomas Wanner & Melissa Nursey-Bray & Md. Masud-All-Kamal & Gerald Atampugre, 2022. "The Role of Climatic and Non-Climatic Factors in Smallholder Farmers’ Adaptation Responses: Insights from Rural Ethiopia," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    5. Rao, Nitya, 2017. "Assets, Agency and Legitimacy: Towards a Relational Understanding of Gender Equality Policy and Practice," World Development, Elsevier, vol. 95(C), pages 43-54.
    6. Babigumira, Ronnie & Angelsen, Arild & Buis, Maarten & Bauch, Simone & Sunderland, Terry & Wunder, Sven, 2014. "Forest Clearing in Rural Livelihoods: Household-Level Global-Comparative Evidence," World Development, Elsevier, vol. 64(S1), pages 67-79.
    7. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    8. Debelo Bedada Yadeta & Fetene Bogale Hunegnaw, 2022. "Effect of International Remittance on Economic Growth: Empirical Evidence from Ethiopia," Journal of International Migration and Integration, Springer, vol. 23(2), pages 383-402, June.
    9. Food Security and Agricultural Projects Analysis Service (ESAF), 2004. "Food insecurity and vulnerability in Viet Nam: Profiles of four vulnerable groups," ESA Working Papers 23798, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    10. Munshi Sulaiman & Mehnaz Rabbani & Vivek A. Prakash, 2010. "Impact Assessment of CFPR/TUP: A Descriptive Analysis Based on 2002-2005 Panel Data," Working Papers id:2567, eSocialSciences.
    11. Soltani, Arezoo & Angelsen, Arild & Eid, Tron & Naieni, Mohammad Saeid Noori & Shamekhi, Taghi, 2012. "Poverty, sustainability, and household livelihood strategies in Zagros, Iran," Ecological Economics, Elsevier, vol. 79(C), pages 60-70.
    12. Sunderlin, William D. & Dewi, Sonya & Puntodewo, Atie & Müller, Daniel & Angelsen, Arild & Epprecht, Michael, 2008. "Why forests are important for global poverty alleviation: A spatial explanation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(2).
    13. repec:zbw:iamodp:109518 is not listed on IDEAS
    14. Hendrawan, Dienda C P & Musshoff, Oliver, 2022. "Oil Palm Smallholder Farmers' Livelihood Resilience and Decision Making in Replanting," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322441, Agricultural and Applied Economics Association.
    15. Jon D. Unruh, 2008. "Toward sustainable livelihoods after war: Reconstituting rural land tenure systems," Natural Resources Forum, Blackwell Publishing, vol. 32(2), pages 103-115, May.
    16. Possenti, Silvia., 2012. "Rural development strategies as a path to decent work and reducing urban informal employment : the case of South Africa," ILO Working Papers 994790883402676, International Labour Organization.
    17. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    18. Yen H. T. Nguyen & Tuyen Q. Tran & Dung T. Hoang & Thu M. T. Tran & Trung T. Nguyen, 2023. "Land quality, income, and poverty among rural households in the North Central Region, Vietnam," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 150-172, June.
    19. Walelign,Solomon Zena & Wang Sonne,Soazic Elise & Seshan,Ganesh Kumar, 2022. "Livelihood Impacts of Refugees on Host Communities : Evidence from Ethiopia," Policy Research Working Paper Series 10044, The World Bank.
    20. Porro, Roberto & Lopez-Feldman, Alejandro & Vela-Alvarado, Jorge W., 2015. "Forest use and agriculture in Ucayali, Peru: Livelihood strategies, poverty and wealth in an Amazon frontier," Forest Policy and Economics, Elsevier, vol. 51(C), pages 47-56.
    21. Jung, Suhyun & Hajjar, Reem, 2023. "The livelihood impacts of transnational aid for climate change mitigation: Evidence from Ghana," Forest Policy and Economics, Elsevier, vol. 155(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:68:y:2015:i:c:p:19-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.