Child labour and consumer responsibility: an impact study
We evaluate the impact of fair trade (FT) affiliation on child labour on a sample of Chilean honey producers with a retrospective panel data approach. From a theoretical point of view we argue that, in the short run, FT acts, on both adult and child wages, as a pure income effect to which a productivity effect adds up in the medium run. The direction of the impact is therefore uncertain and requires empirical testing. Our econometric findings document a significant impact of affiliation years on child schooling after controlling for endogeneity and the heterogeneity between treatment and control sample.
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