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When Consumption Heals Producers: The Effects of Fair Trade on Marginalized Producers

Author

Listed:
  • Leonardo Becchetti
  • Giuseppina Gianfreda

Abstract

Concerned consumers in the US and Europe are increasingly willing to pay an "ethical premium" for the social and environmental value of fair trade (FT) products. One of the fair trade criteria (aimed to enhance wellbeing and capacity building of marginalised producers) relates to producers’ health and creation of healthy working conditions. We evaluate its significance by comparing days lost for illness by FT- and non-Ftaffiliated Kenyan farmers. We find that FT-affiliation years have a significant effect, in the expected direction, on producers’ health, after controlling for selection bias.

Suggested Citation

  • Leonardo Becchetti & Giuseppina Gianfreda, 2011. "When Consumption Heals Producers: The Effects of Fair Trade on Marginalized Producers," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.
  • Handle: RePEc:rar:journl:0217
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    References listed on IDEAS

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    1. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
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    3. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
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    5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2006. "Income and happiness: Evidence, explanations and economic implications," PSE Working Papers halshs-00590436, HAL.
    6. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    7. Leonardo Becchetti & Pierluigi Conzo & Giuseppina Gianfreda, 2009. "Market access, organic farming and productivity: the determinants of creation of economic value on a sample of Fair Trade affiliated Thai farmers," Econometica Working Papers wp05, Econometica.
    8. Redfern, Andy. & Snedker, Paul., 2002. "Creating market opportunities for small enterprises : experiences of the fair trade movement," ILO Working Papers 993570693402676, International Labour Organization.
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    Citations

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    Cited by:

    1. Ana C. Dammert & Sarah Mohan, 2015. "A Survey Of The Economics Of Fair Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 855-868, December.

    More about this item

    Keywords

    Fair trade; Health; Impact studies; Organic farming;

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I10 - Health, Education, and Welfare - - Health - - - General

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