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The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers

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  • Leonardo Becchetti
  • Stefano Castriota
  • Melania Michetti

Abstract

We evaluate the impact of Fair Trade (FT) affiliation on child schooling within a sample of Chilean honey producers with a retrospective panel data approach. From a theoretical point of view, we argue that FT should have a positive effect on child schooling since it generates a short-run pure income effect together with a medium-run productivity effect on both adult and child wages. On the other hand, because of the higher productivity generated by the medium-run effect, the opportunity cost of child education increases if they work with their parents. The direction of the impact of FT affiliation on child schooling is therefore uncertain and requires empirical testing. Our econometric findings document a positive and significant impact of affiliation years on child schooling after controlling for endogeneity and heterogeneity between the treatment and control sample.

Suggested Citation

  • Leonardo Becchetti & Stefano Castriota & Melania Michetti, 2013. "The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers," Applied Economics, Taylor & Francis Journals, vol. 45(25), pages 3552-3563, September.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3552-3563
    DOI: 10.1080/00036846.2012.727980
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    2. Meemken, Eva-Marie & Spielman, David J. & Qaim, Matin, 2017. "Trading off nutrition and education? A panel data analysis of the dissimilar welfare effects of Organic and Fairtrade standards," Food Policy, Elsevier, vol. 71(C), pages 74-85.
    3. Leslie J. Verteramo Chiu & Jura Liaukonyte & Miguel I. Gómez & Harry M. Kaiser, 2017. "Socially responsible products: what motivates consumers to pay a premium?," Applied Economics, Taylor & Francis Journals, vol. 49(19), pages 1833-1846, April.
    4. Yesim Kustepeli & Yaprak Gulcan & Muırat Yercan & Batuhan Yıldırım, 2023. "The role of agricultural development cooperatives in establishing social capital," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(3), pages 681-704, June.
    5. Jorge Sellare & Eva‐Marie Meemken & Christophe Kouamé & Matin Qaim, 2020. "Do Sustainability Standards Benefit Smallholder Farmers Also When Accounting For Cooperative Effects? Evidence from Côte d'Ivoire," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 681-695, March.
    6. Leonardo Becchetti & Marco Costantino, 2010. "Fair Trade in Italy: Too Much ‘Movement’ in the Shop?," Journal of Business Ethics, Springer, vol. 92(2), pages 181-203, April.

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    More about this item

    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
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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