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Coffee price volatility and intra-household labour supply

Author

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  • Ulrik Beck
  • Saurabh Singhal
  • Finn Tarp

Abstract

Volatility in commodity markets poses an acute 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 Viet Nam to investigate coping mechanisms employed by farmers in a transitioning economy. We find that households cope with lower coffee prices by increasing wage labour of adults with children and adolescents substituting for adults on the farm and in home production. Account should be taken of this finding in formulating and implementing social protection and inclusive growth policies.

Suggested Citation

  • Ulrik Beck & Saurabh Singhal & Finn Tarp, 2016. "Coffee price volatility and intra-household labour supply," WIDER Working Paper Series 016, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2016-0016
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2016-16.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kuma, Tadesse & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2016. "Cash crops and food security: Evidence from Ethiopian smallholder coffee producers," ESSP working papers 95, International Food Policy Research Institute (IFPRI).

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    Keywords

    intra-household allocation; commodity prices; income shocks; labour supply;

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