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Commodity Prices and Intra-Household Labor Allocation

Author

Listed:
  • Ulrik Beck
  • Saurabh Singhal
  • Finn Tarp

Abstract

Volatility in commodity markets poses a distinct risk to farmers in developing countries who rely on cash crop agriculture. We combine a time series of international coffee prices with a long-running panel on coffee-growing households in Vietnam to investigate coping mechanisms employed by farmers in a transitioning economy. We find that households cope with lower coffee prices by increasing wage labor of adults, with children and adolescents substituting for adults on the farm. Heterogeneity analysis indicates a stronger substitution pattern among women, ethnic minorities, and households with fewer assets. A variety of robustness checks corroborate these findings. Account of this finding should be taken in formulating and implementing social protection and inclusive growth policies.

Suggested Citation

  • Ulrik Beck & Saurabh Singhal & Finn Tarp, 2019. "Commodity Prices and Intra-Household Labor Allocation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(2), pages 436-454.
  • Handle: RePEc:oup:ajagec:v:101:y:2019:i:2:p:436-454.
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    File URL: http://hdl.handle.net/10.1093/ajae/aay082
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    Citations

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    Cited by:

    1. Narciso, Gaia, 2020. "Crop prices and the individual decision to migrate," Food Policy, Elsevier, vol. 91(C).
    2. Kaila, Heidi K. & Boone, Christopher, 2020. "The Agricultural Resource Curse? The Welfare Effects of the Vanilla Price Surge," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304439, Agricultural and Applied Economics Association.
    3. Christophe J. Nordman & Smriti Sharma & Naveen Sunder, 2022. "Here Comes the Rain Again: Productivity Shocks, Educational Investments, and Child Work," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1041-1063.
    4. Quang-Thanh Ngo & Thuy-Khanh Hong Thai & Van-Tien Cao & Anh-Tuan Nguyen & Ngoc-Hieu Hoang & Ngoc-Danh Nguyen, 2020. "Individual-level Employment Transitions in Rural Viet Nam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(1), March.
    5. Habtamu Ali Beshir & Jean-François Maystadt, 2022. "Price shocks and human capital: Timing matters," LIDAM Discussion Papers IRES 2022020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Andy McKay & Saurabh Singhal & Finn Tarp, 2018. "Welfare dynamics in rural Vietnam: Learning from regular, high-quality panel data," WIDER Working Paper Series wp-2018-169, World Institute for Development Economic Research (UNU-WIDER).
    7. Narciso, Gaia, 2020. "Reprint of: Crop prices and the individual decision to migrate," Food Policy, Elsevier, vol. 94(C).
    8. Newman, Carol & Singhal, Saurabh & Tarp, Finn, 2020. "Introduction to understanding agricultural development and change: Learning from Vietnam," Food Policy, Elsevier, vol. 94(C).
    9. Xiuling Ding & Qian Lu & Lipeng Li & Apurbo Sarkar & Hua Li, 2023. "Does Labor Transfer Improve Farmers’ Willingness to Withdraw from Farming?—A Bivariate Probit Modeling Approach," Land, MDPI, vol. 12(8), pages 1-27, August.
    10. Yu Na Lee, 2021. "Does Aversion to Price Risk Drive Migration? Evidence from Rural Ethiopia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1268-1293, August.

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