FEEM working papers "Note di lavoro" series
2012 .056

The Effect of Fair Trade Affiliation on Child Schooling: Evidence from a Sample of Chilean Honey Producers


Authors: Leonardo Becchetti, Stefano Castriota, Melania Michetti
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Fair Trade, Child Schooling, Impact Study
JEL n.: O19, O22, D64, J22
JEL: Applied Economics
Pages: Volume 45, Issue 25, pages 3552-3563

Abstract

We evaluate the impact of fair trade (FT) affiliation on child schooling within a sample of Chilean honey producers with a retrospective panel data approach. From a theoretical point of view we argue that FT should have a positive effect on child schooling since it generates a short run pure income effect together with a medium run productivity effect on both adult and child wages. On the other hand, because of the higher productivity generated by the medium run effect, the opportunity cost of child education increases if they work with their parents. The direction of the impact of FT affiliation on child schooling is therefore uncertain and requires empirical testing. Our econometric findings document a positive and significant impact of affiliation years on child schooling after controlling for endogeneity and heterogeneity between the treatment and control sample.

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Suggested citation: Leonardo Becchetti, Stefano Castriota, Melania Michetti, The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers, Applied Economics, Volume 45, Issue 25, 2013, DOI: 10.1080/00036846.2012.727980

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