Fair Trade in the Fields of Florida: The Impact of the Penny-Per-Pound on Tomato Pickers

Arbeitspapier

Despite the enduring appeal of fair trade activism, little evidence exists on its effectiveness in improving producer welfare. This paper provides evidence on the direct effects of a fair trade premium on its target beneficiaries, using the case of the Penny-Per-Pound, a program that increased the piece-rate wages received by tomato pickers in Florida. It highlights that in output-constraint settings, common in agriculture, a piece-rate compensation scheme can result in externalities among workers. By inadvertently incentivizing the workers to increase their effort whereas the total output is fixed, the program amplified the externality and generated unforeseen risks for worker displacement.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CReAM Discussion Paper Series ; No. 16/14

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Standards: Public Policy ; Personnel Economics: Compensation and Compensation Methods and Their Effects ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
• Thema: consumer activism ; price premium ; capacity constraint ; natural experiment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Ku, Hyejin
• Ereignis: Veröffentlichung
• (wer): Centre for Research & Analysis of Migration (CReAM), Department of Economics, University College London
• (wo): London
• (wann): 2014

Weitere Informationen

• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ