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Commodity prices and intra-household labor allocation

Research output: Contribution to journalJournal article

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<mark>Journal publication date</mark>1/03/2019
<mark>Journal</mark>American Journal of Agricultural Economics
Issue number2
Volume101
Number of pages19
Pages (from-to)436-454
Publication statusPublished
Early online date6/12/18
Original languageEnglish

Abstract

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