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Organic and Geographical Indication Certifications' Contributions to Employment and Education

Author

Listed:
  • Mohamed Hilal

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Guy Leedon

    (Research School of Management - ANU - Australian National University)

  • Matthieu Duboys de Labarre

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Federico Antonioli

    (DAFNE - Department of Agriculture and Forestry Science [Viterbo] - Università degli studi della Tuscia [Viterbo])

  • Michael Boehm

    (Ecozept - Partenaires INRAE)

  • Csillag Péter

    (ECO-SENSUS Research and Communication Non-profit Ltd, Hungary - Partenaires INRAE)

  • Michele Donati

    (UNIPR - Università degli studi di Parma = University of Parma)

  • Marion Drut

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Hugo Ferrer-Pérez

    (Center for Agro-Food Economics and Development - UPC - Universitat Politècnica de Catalunya = Université polytechnique de Catalogne [Barcelona] - IRTA - Institute for Agrifood Research and Technology)

  • Lisa Gauvrit

    (Ecozept - Partenaires INRAE)

  • Jose Maria Gil

    (Center for Agro-Food Economics and Development - UPC - Universitat Politècnica de Catalunya = Université polytechnique de Catalogne [Barcelona] - IRTA - Institute for Agrifood Research and Technology)

  • Alexandros Gkatsikos

    (Department of Agricultural Economics, - Aristotle University of Thessaloniki)

  • Marlena Gołaś

    (Department of Economics and Organisation of Entreprises, Institute of Economics and Finance - SGGW - Warsaw University of Life Sciences)

  • Viet Hoang

    (School of Economics - UEH - University of Economics Ho Chi Minh City)

  • Kamilla Knutsen Steinnes

    (SIFO - National Institute for Consumer Research - National Institute for ConsumerResearch)

  • Apichaya Lilavanichakul

    (Agro-Industrial Technology, Faculty of Agro-Industry - KU - Kasetsart University [Bangkok, Thailand], Manufacturing Systems and Mechanical Engineering - Sirindhorn International Institute of Technology, Klong Luang, Pathumthani 12121, Thailand)

  • Agata Malak-Rawlikowska

    (Department of Economics and Organisation of Entreprises, Institute of Economics and Finance - SGGW - Warsaw University of Life Sciences)

  • Konstadinos Mattas

    (Department of Agricultural Economics, School of Agriculture - Aristotle University of Thessaloniki)

  • Orachos Napasintuwong

    (Department of Agricultural and Resource Economics, Faculty of Economics - KU - Kasetsart University [Bangkok, Thailand])

  • An Nguyen

    (School of Economics - UEH - University of Economics Ho Chi Minh City)

  • Bojan Ristic

    (Faculty of Economics - University of Belgrade [Belgrade])

  • Burkhard Schaer

    (Ecozept - Partenaires INRAE)

  • Marina Tomic Maksan

    (UNIZG - Faculty of Agriculture [Zagreb] - University of Zagreb)

  • Ružica Brečić

    (Faculty of Economics & Business - University of Zagreb)

  • Áron Török

    (Department of Agricultural Economics - Corvinus University of Budapest, ECO-SENSUS Research and Communication Non-profit Ltd, Hungary - Partenaires INRAE)

  • Gunnar Vittersø

    (SIFO - National Institute for Consumer Research - National Institute for ConsumerResearch)

  • Valentin Bellassen

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

In this paper, we test to what extent Food Quality Schemes (FQS, including Geographical Indications and organic products) contribute to the social and economic sustainability of farmers and regions through employment and education. Through employment, FQS may counter the urban migration trend affecting rural regions, and help retain economic and social capital in the local region. Indeed, as FQS are often small and specialised sectors, the economic inefficiency of such businesses may translated into greater employment and social sustainability. Separately , by requiring a higher-level of quality and hence skills, FQS may encourage greater local educational attainment or skilled immigration. To test these propositions , we analyse the employment and educational outcomes of 25 FQS. Our results show that the FQS products examined have a 13% higher labour usage (labour-to-production ratio) compared to reference products, indicating that they provide greater employment. Additionally, wage levels are 32% higher in FQS compared to references. Despite providing greater employment and higher wages, profitability of FQS (i.e. how much turnover/profit is generated per employee) is nevertheless 32% higher for FQS compared to reference products, due to the ability to attract higher product prices. Finally, there is no clear link between FQS and greater (or lower) education attainment in the supply chain. Overall, our results suggest that FQS can provide a strong contribution to local employment, employee income and business profits, strengthening the social and economic sustainability of producers and regions.

Suggested Citation

  • Mohamed Hilal & Guy Leedon & Matthieu Duboys de Labarre & Federico Antonioli & Michael Boehm & Csillag Péter & Michele Donati & Marion Drut & Hugo Ferrer-Pérez & Lisa Gauvrit & Jose Maria Gil & Alexan, 2020. "Organic and Geographical Indication Certifications' Contributions to Employment and Education," Post-Print hal-02976794, HAL.
    • Handle: RePEc:hal:journl:hal-02976794
    DOI: 10.1515/jafio-2019-0042
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02976794
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    References listed on IDEAS

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