Commodity Prices and Intra-Household Labor Allocation
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Volatility in commodity markets poses a distinct 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 Vietnam to investigate coping mechanisms employed by farmers in a transitioning economy. We find that households cope with lower coffee prices by increasing wage labor of adults, with children and adolescents substituting for adults on the farm. Heterogeneity analysis indicates a stronger substitution pattern among women, ethnic minorities, and households with fewer assets. A variety of robustness checks corroborate these findings. Account of this finding should be taken in formulating and implementing social protection and inclusive growth policies.
Original language | English |
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Journal | American Journal of Agricultural Economics |
Volume | 101 |
Issue number | 2 |
Pages (from-to) | 436-454 |
ISSN | 0002-9092 |
DOIs | |
Publication status | Published - 6 Dec 2018 |
- Faculty of Social Sciences - Microeconomic Analyses of Economic Development, Time Allocation and Labor Supply, Commodity Markets
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