Does Fair Trade Help to Avoid Poverty Traps? The Effect of Fair Trade on Producers' Income and Schooling Decisions

Posted: 24 Sep 2011 Last revised: 31 Aug 2014

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Pierluigi Conzo

University of Turin - Department of Economics and Statistics; Collegio Carlo Alberto

Fabio Pisani

University of Rome Tor Vergata

Elisa Portale

Università degli Studi di Milano-Bicocca

Date Written: July 1, 2011

Abstract

We evaluate the impact of fair trade (FT) affiliation on a sample of (treatment and control) producers from two different fair trade projects in a poorer and a relatively better off area of Peru. In both projects, we find that producer’s income is significantly associated with years of affiliation after controlling for spillovers/externalities. Estimates on the determinants of schooling decisions and education gap on backcast panel data are not at odds with the luxury axiom hypothesis, showing that the impact of affiliation years on the dependent variable is stronger in the project with relatively better-off producers. This result is also consistent with the relatively higher returns on (parental) education estimated in the same project.

Keywords: fair trade, child labour

JEL Classification: O19, O22, D64

Suggested Citation

Becchetti, Leonardo and Conzo, Pierluigi and Pisani, Fabio and Portale, Elisa, Does Fair Trade Help to Avoid Poverty Traps? The Effect of Fair Trade on Producers' Income and Schooling Decisions (July 1, 2011). Rivista Italiana degli Economisti, Vol. 2, July 2011, Available at SSRN: https://ssrn.com/abstract=1932636

Leonardo Becchetti (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Pierluigi Conzo

University of Turin - Department of Economics and Statistics ( email )

Campus Luigi Einaudi
Lungo Dora Siena 100 A
Torino, Torino 10153
Italy
011/6703892 (Phone)
011/6703895 (Fax)

HOME PAGE: http://www.pieroconzo.altervista.org/wordpress/

Collegio Carlo Alberto ( email )

Piazza Arbarello, 8
Torino, 10122
Italy

HOME PAGE: http://www.carloalberto.org/people/faculty/affiliates/pierluigi-conzo/

Fabio Pisani

University of Rome Tor Vergata ( email )

Via di Tor Vergata
Rome, Lazio 00133
Italy

Elisa Portale

Università degli Studi di Milano-Bicocca ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, Milan 20126
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
782
PlumX Metrics