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

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  • 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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    8. Leonardo Becchetti & Pierluigi Conzo & Giuseppina Gianfreda, 2012. "Market access, organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 117-140, January.
    9. 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.
    10. Leonardo Becchetti & Pierluigi Conzo & Giuseppina Gianfreda, 2012. "Market access, organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 117-140, January.
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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.

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    More about this item

    Keywords

    Fair trade; Health; Impact studies; Organic farming;
    All these keywords.

    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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