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 languageEnglish
JournalAmerican Journal of Agricultural Economics
Issue number2
Pages (from-to)436-454
Publication statusPublished - 6 Dec 2018

    Research areas

  • Faculty of Social Sciences - Microeconomic Analyses of Economic Development, Time Allocation and Labor Supply, Commodity Markets

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