leonardo becchetti, pierluigi conzo e - econometica.it · virtuous interactions in removing...

Virtuous interactions in removing exclusion: the link

between foreign market access and access to education.

Working papers

Leonardo Becchetti,Pierluigi Conzo e

Fabio Pisani

N.10 July 2009

!!Virtuous interactions in removing exclusion: the link between foreign market access and

access to education.

!!"#$%&'($!)#**+#,,-.!University of Rome Tor Vergata

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Keywords: child schooling, market access, fair trade.

JEL numbers: HIJ.!HCC.!KLME

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1. Introduction

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alleviation and sustainable development. Its purpose is to create opportunities for producers who

have been economically disadvantaged or marginalized by the conventional trading systemfE!

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!_! @**$'(-%2! ,$! ,+#! N5@>! *+&',#'! 71*+! *'-,#'-&! &'#g! i) Creating opportunities for economically

disadvantaged producers; ii) Transparency and accountability; iii) Capacity building; iv)

Promoting Fair Trade; v) Payment of a fair price; vi) Gender Equity; vii) Working conditions

(healthy working environment for producers. The participation of children, if any, does not

adversely affect their well-being, security, educational requirements and need for play and

conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local

context); viii) The environment; ix) Trade Relations (Fair Trade Organizations trade with concern

for the social, economic and environmental well-being of marginalized small producers and do not

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scale organic farmers with fair trade principles in its marketing activitiesf.!&%(.!-%!B&',-*10&'.!,$g!i) promote organic way of life through marketing and producing high quality organic and natural

products (organic fairtrade rice; organic vegetables and baby corn organic coconut silk and

cotton); ii) conduct trade with fair price for producers and buyers; iii) have responsibility for

consumers and environment; iv) Support producers to organize as community enterprise to produce

high quality organic and natural products and safe for consumers and environment; v) transfer

knowledge organization’s research and development to general public; vi) campaign for

environment and fair trade; vii) support employees’ creativity and make them feel as an important

part of organization; commit to generate organization growth with stability and continuity; viii)

create added value for share-holders and appropriate returns; ix) be a model organization of

“Social business” and encourage other business bodies to be more concerned with consumers

safety, environment conservation and social responsibilityE!

! ID

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! II

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Farmer Organization!Q)<5HS!&%(!,+#!Nature Care Society!Qa3\SE!!

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3.1 The Bak Reua Farmer Organization (BRFO)

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3.2 The Nature Care Society!Qa3\S

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5. Descriptive findings

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6. Econometric findings

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References

@'#00&%$.!bE.!&%(!HE!)$9#'.!QIJJ^SZ!Another look at the instrumental variables estimation of error

components modelsE!d$1'%&0!$;!c*$%$=#,'-*7!LXg!CJVÎ!!)&*$%.! 3E! QCDD^SE! Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty

CoffeesReduce Small-Scale Farmer Vulnerability in Northern Nicaragua?! A$'0(! K#9#0$B=#%,!__Q_S.!MJRVÎIE!!)&0&%(.! dEbE! &%(! K1B'#4.! 3E! QCDDXSZ! Are Fair Trade Labels Effective Against Child Labour?!!3c/<!K-7*177-$%!/&B#'!a$!LC^JE!!!)&71! YE! &%(! ?&%! /E[E.! QIJJXSZ! The Economics of Child LaborE! @=#'-*&%! c*$%$=-*! <#9-#F!XXgMICVMCRE!!)&71.! YE! &%(! ?&%.! /E[E! QIJJXS.! n>+#! c*$%$=-*7! $;! 3+-0(! "&6$'W.! American Economic Review!XXQ_Sg!MICVCRE!!)#**+#,,-!"E.!3&7,'-$,&!\E.!b-*+#,,-!bE.!QCDDXSZ!Testing the luxury axiom: the effects of fair trade on

child schooling decision on a sample of Chilean honey producers.!=-=#$E!!)#**+#,,-!"E.!3$%4$!/E!&%(!`-&%;'#(&!È.!QCDDJSE!Market access, organic farming and productivity:

the determinants of creation of economic value on a sample of fair trade affiliated Thai farmersE!c*$%$=#,-*&!A$'G-%2!/&B#'7!FBD^.!c*$%$=#,-*&E!!)#**+#,,-.!"E!`-&00$%&'($!cE!>#77-,$'#.!aE! QCDDXSZ!Ethical product differentiation with symmetric

costs of ethical distanceE!<-9-7,&!(-!/$0-,-*&!c*$%$=-*&.!;$',+E!!)#**+#,,-!"E.!3$7,&%,-%$!bE!QCDDXSZ!Fair trade on marginalized producers: an impact analysis on

Kenyan farmersE!A$'0(!K#9#0$B=#%,!_L^g!XC_oXMCE!!)#**+#,,-!"E.!b-*+#,,-.!bE.!QCDDXSZ!When Consumption Generates Social Capital: Creating Room

for Manoeuvre for Pro-Poor Policies. c*-%#T!F$'G-%2!B&B#'7!XXE!!)#**+#,,-! "E.! \$0;#'-%$.! aE! QCDDXSE! On ethical product differentiation, Economia e Politica

Industriale,!Q;$',+SE!

! CM

!)#**+#,,-!"E.!<$7&,-!5E! QCDDRSZ!Globalisation and the death of distance in social preferences and

inequity aversion: empirical evidence from a pilot study on fair trade consumers.! >+#! A$'0(!c*$%$=:.!_D!Q^Sg!XDRV_DE!!!!)#**+#,,-! "E! 3$7,&%,-%$! bE! /$',&0#! cE.! CDDR.! Human capital, externalities and tourism: three

unexplored sides of the impact of FT affiliation on primary producers.!3cN\!F$'G-%2!B&B#'!%E!CLC!!!)#*G#'.!`&':!\E.! &%(!a-2#0!>$=#7.! QIJRLSE! e3+-0(!c%($F=#%,7!&%(! ,+#!p1&%,-,:!&%(!p1&0-,:!$;!3+-0('#%.f!Journal of Political Economy.!XMQMS!/&',!C.!\IM_V\ILCE!!)+&0$,'&.!\E.![#&(:.!3E! QCDD_SZ!Child Farm Labor: The Wealth ParadoxE!A$'0(!)&%G!c*$%$=-*!<#9-#F!IRQCSg!IJRVCCRE!!)0&*G.! \E! cE.! K#9#'#1O! /E! dE! &%(! \&09&%#7! YE! `E! QCDD^SZ!The More the Merrier? The Effect of

Family Size and Birth Order on Children’s EducationE! p1&',#'0:! d$1'%&0! $;! c*$%$=-*7.! ICDQCS.!b&:E!!)01%(#00.! <E.! )$%(! \E! QIJJXSZ! Initial conditions and moment restrictions in dynamic panel data

modelsE!d$1'%&0!$;!c*$%$=#,'-*7!XRg!II.IM_E!!)$$,+.!@E!"E!&%(!Y##.![E!dE!QCDDJSZ!Birth Order Matters: The Effect of Family Size and Birth Order

on Educational Attainment.!d$1'%&0!$;!/$B10&,-$%!c*$%$=-*7.!@B'-0!CDDJ.!9E!CC.!%E!C.!BBE!_LRVJRE!!3&7,'$.!dEcE!QCDDISZ!Impact assessment of Oxfam's fair trade activities. The case of Productores de

miel Flor de CampanillaE!HO;$'(g!HO;&=E!!3-2%$.! @E.! <$7&,-.! 5E! QCDD^SE! The Economics of Child LabourE! QHO;$'(! 8%-9#'7-,:! /'#77.!3&=6'-(2#SE!!3-2%$.! @E.! <$7&,-.! 5E! &%(! qE! >4&%%&,$7! QCDDCS.!Child Labor HandbookE! A)! \$*-&0! /'$,#*,-$%!K-7*177-$%!/&B#'!aE!DCDLE!!!K&9-(7$%.!<E!&%(!b&*Y-%%$%.! dE! QIJJ_SZ!Estimation and Inference in EconometricsE! !a#F!]$'Gg!HO;$'(!8%-9#'7-,:!/'#77E!!K#6.!/E!&%(!<$7&,-.!5E! QCDDCSZ!Determinants of Child Labor and School Attendance: The Role of

Household UnobservablesE! 8%(#'7,&%(-%2! 3+-0('#%7! A$'G! A$'G-%2! /&B#'E! 50$'#%*#g! N%%$*#%,-!<#7#&'*+!3#%,#'E!!c(=$%(7.!cE!?E.!QCDDRSZ!Child laborE!a)c<!A$'G-%2!/&B#'!%E!ICJCL!!cP'%&#7!bE!&%(!/$',%#'!3E!3E!QCDDMSZ!Birth Order and the Intrahousehold Allocation of Time and

EducationE!<#9-#F!$;!c*$%$=-*7!&%(!\,&,-7,-*7E!"rrr?NQMS.!a$9E!IDDXVIJE!!`1&'*#00$!"E.!b#&00-!5E.!<$7&,-!5E!QCDDCSE!Household Vulnerability and Child Labour: the Effect of

Shocks, Credit Rationing and InsuranceE!83A!A$'G-%2!/&B#'!_.!8%(#'7,&%(-%2!3+-0('#%l7!A$'G!Q83A!/'$P#*,SE!!![&%17+#G.!cE!@E! QIJJCSZ!The Trade-off between Child Quantity and QualityE! d$1'%&0! $;! /$0-,-*&0!c*$%$=:.!?$0E!IDD.!a$E!IE!Q5#6E.!IJJCS.!BBE!XMVIIRE!

! C^

[&:#7.! bE! QCDDMSZ! Strategic management implication of the ethical consumerE!s+,,BgUUFFFE;&-','&(#'#7#&'*+E$'2tE!!N&*$9$1.!bE!QCDDISZ!Family Composition and Children's Educational OutcomesE!A$'G-%2!/&B#'!$;!N%7,-,1,#!;$'!\$*-&0!&%(!c*$%$=-*!<#7#&'*+.!B&B#'!CDDIVIC!Q/K5SE!3$0*+#7,#'g!8%-9#'7-,:!$;!c77#OE!Qd1%#SE!!Y$+0#'! /E! QCDDRSZ!The Economics of Fair Trade: For Whose Benefit? An Investigation into the

Limits of Fair Trade as a Development Tool and the Risk of Clean-WashingEDLVCDDR.![cN!A$'G-%2!/&B#'7E!!!"#30&-'.!bE!\E! QCDDCSZ!Fighting the tide: Alternative trade organizations in the era of global free

trade. A$'0(!K#9#0$B=#%,!_DQRSg!IDJJoIICCE!!b&'T1&'(,.! KE! AE! QIJRDSE! `#%#'&0-4#(! -%9#'7#7.! '-(2#! '#2'#77-$%.! 6-&7#(! 0-%#&'! #7,-=&,-$%.! &%(!%$%0-%#&'!#7,-=&,-$%.!>#*+%$=#,'-*7!IC.^JIoLICE!!b&7#0&%(.!<E.!u!K#!?&&0.!@E!QCDDCSZ!How Fair is Fair Trade?!K#!c*$%$=-7,!I^DQ_Sg!CÎVCRCE!!b*N%,$7+.!3E.!?-00&'&%.!È! &%(!A:(-*G.!)E! QCDDRSZ!Microfinance and Home Improvement: Using

Retrospective Panel Data to Measure Program Effects on Fundamental EventsE!8%-9#'7-,:!$;!\&%!5'&%*-7*$!K#B&',=#%,&0!A$'G-%2!/&B#'E!!b$$'#.!È!QCDDMSZ!The Fair Trade Movement: parameters, issues and future research.!Journal of

Business Ethics 53QIVCSg!R_VXL!!b1%(0&G.!]E!QIJRXSE!H%!,+#!/$$0-%2!$;!>-=#!\#'-#7!&%(!3'$77!\#*,-$%!K&,&E!c*$%$=#,'-*&.!ML!QIS.!LJoXÊ!!a#07$%.!?E!u!`&09#4.!bE! QCDDDSZ!Social Impact of Ethical and Conventional Cocoa Trading on

Forest-Dependent People in EcuadorE!8%-9#'7-,:!$;!`'##%F-*+E!!/&'-#%,#.!AE!QCDDDSZ!The impact of fair trade on a coffee cooperative in Costa Rica. A producers

behaviour approach.!8%-9#'7-,v!/&'-7!N!/&%,+v$%!\$'6$%%#.!a$!IILIVJX.!8%-9#'7-,:!$;!A-7*$%7-%E!!

Psacharopoulos G., Patrinos H. (1995); Educational Performance and Child Labor in Paraguay.

N%,#'%&,-$%&0!d$1'%&0!$;!c(1*&,-$%&0!K#9#0$B=#%,.!I^QISg!MRVLDE!!/7&*+&'$B$10$7!È!QIJJRSZ!Child Labor Versus Educational Attainment: Some Evidence from Latin

AmericaE!d$1'%&0!$;!/$B10&,-$%!c*$%$=-*7.!IDQMSg!_RRV_XLE!!<&%P&%.!/E!QCDDIS.!Credit Constraints and the Phenomenon of Child LaborE!d$1'%&0!$;!K#9#0$B=#%,!c*$%$=-*7.!"rN?.!XIVIDCE!!<#(;#'%.!@E!u!\%#(G#'.!/E!QCDDCSZ!Creating market opportunities for small enterprises: experiences

of the fair trade movementE!N"H.!`#%#9&E!

<#-%7,#-%.! KE! &%(! dE.! \$%2! QCDDXSZ! Efficient Consumer Altruism and Fair Trade.! c*$%$=-*7!K-7*177-$%!/&B#'7!LÎ.!8%-9#'7-,:!$;!c77#O.!K#B&',=#%,!$;!c*$%$=-*7E!

! CL

<$%*+-.! "E! QCDDLSZ! "Fairtrade" and Market Failures in Agricultural Commodity MarketsE!A$'0(!)&%G!/$0-*:!<#7#&'*+!A$'G-%2!/&B#'!MDIIE!A&7+-%2,$%g!N)<KE!!<$%*+-.!"E!QCDDCSZ!The impact of fair trade on producers and their organizations: a case study with

Coocafè in Costa Rica.!8%-9#'7-,:!$;!\177#OE!!<16#%.!<E.!QCDDXSZ!The impact of fair tradeE!A&2#%-%2#%!@*&(#=-*!/160-7+#'7.!A&2#%-%2#%E!!\,##0=&%.!"E!3E.! &%(!/$F#00.!)E! QIJXJSZ!Acquiring capital for college: The constraints of family

configurationE!@=#'-*&%!\$*-$0$2-*&0!<#9-#F.!^M.!XMMoX^^E!!]-0=&4#'.!>E!QCDDXSZ!Saving for Children’s College Education: An Empirical Analysis of the Trade-

off Between the Quality and Quantity of Children.!d$1'%&0!$;!5&=-0:!c*$%$=-*!N771#.!CJ.!%E!C.!_DRV_CME!!!

!

! CR

Table 1 Price formation in Bak Reua and Kud Chun cooperatives

! !"#!$%&"! '&(!)*&+!

!"#$%&'()**+(,(!"#$%&'!($")*"+!

,&+'-++*,!$.!-/!/0*!1"&'*!!(!/0*!

1$,,2!$%,!+*/!&/!$"!-%,3!

-./(0*1***(

23453'6()**7!4!5!%6*%/&!%$7!

($")*"+!"*'*&6*,!("!)!/0*!)$"8*/!

/0*!+$)*!1"&'*!$+!!"#$%&'!($")*"+!

9:;<!=>>>>?@!

A"#$%&'!($")*"+!0*%'*!$+8*,!

B"**%C*/!/!!"*'*&6*!$!0&#0*"!1"&'*!

$+!&%'*%/&6*!(!"!"*)$&%&%#!

$((&7&$/*,@!

D&%$772!B"**%C*/!&%'"*$+*,!/0*!

1"&'*!(!"!!"#$%&'!1$,,2!!(8(

9(-./()1:**(

;*%'*E!(!"!!"#$%&'!($")*"+!/0*!

#-$"$%/**,!1"&'*!(!"!F>>G!&+!!%!

$6*"$#*8(

;(-./(0)1:**(

HI$,,2!1"&'*!'$%!+/&77!6$"2!$''!",&%#!/!!J-$7&/2K@!

L,,&/&!%$772E!/0*!D:!1"*)&-)!/0$/!

#!*+!!%72!/!!1"!,-'*"M+!#"!-1!&+!(!"!

F>>G!9$''!",&%#!/!!DNA!7$O?3!

9(-./(+:*(

:0*!D:!.!%-+!9$7+!!'$77*,!1$,,2!

(-%,?!/0$/!#!*+!,&"*'/72!/!!!"#$%&'!

($")*"+!&+3!

9(-./(01)7*(

D-"/0*"!D:!.*%*(&/+3!<$"3=(#'3>4>4?1(&@#&4A>$4(3"#>B>#>&A1(3CB>A>4?(34C(A5DD$'#(#$($'?34>"(

E3'F&'A(

N!'$7!'!!1*"$/&6*!!,&6&,*%,(G#$(

$'?34>"(34C("$4B&4#>$43=(

F&F%&'AHI(

J3'>3%=&(GD$A>#>B&H("$FD5#&C(3A(

E$==$KA8(

7L($E(#M&("3D>#3=(AM3'&(E3'F&'A(

>4B&A#&C(>4(#M&("$$D&'3#>B&((

9(-./(:*(D&'(#$4($E(D3CC6(A$=CI(

J3'>3%=&(

G>!&%!/0*!7$+/!2*$"+?!

D$&""/"$,*!1"*)&-)!-/&7&P$/&!%!

(

-M&(D'&F>5F(>A(C>B>C&C(>4#$(

A&B&'3=(E54CA(#$(KM>"M(E3'F&'(

F&F%&'A("34(3DD=6(E$'(A5DD$'#(

G3H(?'&&4(F345'&(A&&C(

G%H(E3'F&'(#'3>4>4?(

G"H(F&F%&'(K&=E3'&1(&I?I(

&C5"3#>$4($E(#M&>'("M>=C'&41(

43#5'3=(C>A3A#&'('&=>&E(

G3H(:*L(>A(3==$"3#&C(#$(#M&(F>==(#$(

>FD'$B&(>#A(F343?&F&4#((

G%H():L(>A(3==$"3#&C(#$(#M&(

&@#&4A>$4(K$'NA(

G"H():L(>A(3==$"3#&C(E$'(!'?34>"(

O3>',-'3C&(O54CI(-M>A(O54C(M3A(

3=A$("$4#'>%5#>$4(E'$F($#M&'(

A$5'"&A(34C(D'$B>C&A(=$34A(#$(

F&F%&'A(KM$(K>AM(#$("$4B&'#(#$(

A5A#3>43%=&(D'$C5"#>$4(3A(K&==(3A(

$#M&'("$FF54>#6(%&4&E>#AI(

<$"3=("$$D&'3#>B&(E54CA(G/!!

!"#$%&'!$%,!'!%6*%/&!%$7!

)*).*"+H(#3N&4(E'$F("$$D&'3#>B&(

D'$E>#AI(

<$34A(

P3B>4?(Q'$5DA(

! CX

Table 2. Summary information on the samples

!!!THE “TREATMENT” GROUP AND THE “CONTROL GROUP

!IN THE WHOLE AREA

a1=6#'!$;!H67#'9&,-$%7! _LD!

aE!$;!;&-'!,'&(#!&;;-0-&,#(!$'2&%-*!;&'=#'7!Q,'#&,=#%,!2'$1BS! IXD!

aE!$;!%$%!;&-'!,'&(#!&;;-0-&,#(!!%$%V$'2&%-*!;&'=#'7!Q*$%,'$0!2'$1BS! IXD!

>$,&0!%E!$;!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! CXX!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!%$%!&;;-0-&,#(!,$!*$$B#'&,-9#7! RC!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! IDX!

aE!$;!5&'=#'7!-%!*$%9#'7-$%! IM!

BAK REUA

a1=6#'!$;!H67#'9&,-$%7! CID!

aE!$;!;&-'!,'&(#!&;;-0-&,#(!$'2&%-*!;&'=#'7!Q,'#&,=#%,!2'$1BS! ID^!

aE!$;!%$%!;&-'!,'&(#!&;;-0-&,#(!!%$%V$'2&%-*!;&'=#'7!Q*$%,'$0!2'$1BS! ID^!

>$,&0!%E!$;!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! ILC!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!%$%!&;;-0-&,#(!,$!*$$B#'&,-9#7! MX!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! ^R!

aE!$;!5&'=#'7!-%!*$%9#'7-$%! R!

KUD CHUM

a1=6#'!$;!H67#'9&,-$%7! I^D!

aE!$;!;&-'!,'&(#!&;;-0-&,#(!$'2&%-*!;&'=#'7!Q,'#&,=#%,!2'$1BS! R^!

aE!$;!%$%!;&-'!,'&(#!&;;-0-&,#(!!%$%V$'2&%-*!;&'=#'7!Q*$%,'$0!2'$1BS! R^!

>$,&0!%E!$;!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! ICL!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!%$%!&;;-0-&,#(!,$!*$$B#'&,-9#7! CM!

aE!$;!*$%,'$0!2'$1B!;&'=#'7!&;;-0-&,#(!,$!*$$B#'&,-9#7! ^I!

aE!$;!5&'=#'7!-%!*$%9#'7-$%! R!

!

! CJ

Table 3. Confidence intervals of selected variables for FT producers and the control sample ! Ft producers Non Ft producers

Variables Obs. Mean [95% Conf. Interv.] Obs. Mean [95% Conf. Interv.]

Socio-demographic features

5,!:#&'7! IXD! ÊCX_w!!!!! ÊDRXDJC!!!ÊMXX^RM! IXD!!!!! D! !

3#',-;-*&,-$%!:#&'7! IXD! LEXXXw!!!!! LEM_ILLR!!!!!RE_MLII! IXD!!!!! D! !

@2#! IXD! MJEI! MREMIRLI!!!!^DERXC_J! IXD! ÎE_CCCC! MJEÎ^M^!!!!!!^_EICJ!

\*+$$0!:#&'7! IXD!!!!! LELIIw!!!!! LEI_C^RJ!!!!REDXJLM_! IXD! ÊJD^^^Lw!!!!! ÊMJC^^!!!!LE_IX^LI!

/#$B0#!-%!,+#!+$17#+$0(! IXD!!!!! _EXCR!!!!! _ELI_^R_!!!!MEDMIJX_! IXD!!!!! _ERLLLLR! _EÎLMI_!!!!!MEDILJC!

a1=6#'!$;!*+-0('#%! IXD! CEMXX!!!!! CE_DCDDX!!!!CELR^RLJ! IXD! CE^^!!!!! CE__IDXC!!!!CERLXJIX!

! ! ! ! ! ! !

Income, productivity and investment ! ! ! ! !

N%*$=#!;'$=!&2'-*10,1'#!! IXD! LDJMCEMJw! ^^CCÊML!!LLL^JE^_! IRJ! MILMLE_Rw! _L_L_EÎ!!!MLJCJECC!

>$,&0!-%*$=#!! IXD! RXRRXELIw! RDMLJEMM!!!!XRDXRERR! IRJ!!!!! ^ÎR_ERMw! MXDMDEDX!!!!LC_DREMI!

5&=-0:!-%*$=#!! IXD! IDMXJRE_ JCMRJEM^!!!!IIR_IÊC! IRJ!!!!! XRDXJE_J! RCXIMEDC!!!!IDI_LMEX!

>#=B$'&':!#=B0$:##7!! IXD!!!!! _EXCCw!!! CEJIM__I!!!!MER_DII_! IXD!!!!! CE^^w! IEXR^LR!!!!!_ECCM__!

c=B0$:##!(&-0:!F&2#!! XL!!!!!!! I^LECRJ! IMREID^L!!!!ILÊM^C^! LJ!!!!!!! I^_ERLXI! IMXEL_R_!!!!!I^XEXJJ!

"&%(!7-4#!! IXD!!! CLEDXD! CMEIRMIL!!!!CREJXLJ^! IXD! C_EX^^^L! CIELIJXI!!!!!CLEDJI_!

>$,&0!B'$(1*,-9-,:! IXD! J_ERMJw! RREDCLRC!!!!IIDEMRI^! IRR! LREM_LCXw! ^MEJ^ML^!!!!RJEJIRJI!

/'$(1*,-9-,:!$;!,+#!I7,!F$'G-%2!&*,-9-,:!! IXD! ICÊXJI!!!!! IDMEMMCX!!!!IMRE__JJ! IRR!!!!! JXEMDCRI! RCEDJXMR!!!!ICMERDLJ!

/'$(1*,-9-,:!$;!,+#!C%(!F$'G-%2!&*,-9-,:! JC! MJEDIMw! _CERRI^C!!!!LÊC^LCC! X^! CÊXR^CCw! IJE^JXR^!!!!_CEIÎLJ!

N%9#7,=#%,!-%!-%B1,! IXD!!!!! IMLÎELR! CJLDEIJ_!!!!CL_M_EIM! IXD!!!!! ^CLÊ^^L! C^XEMMLJ!!!!IDCRCELL!

Price, sales and trading conditions ! ! ! ! ! !

"$*&0!Q%$%!`'##%a#,S!*$$B#'&,-9#!!B'-*#! IRR! II_DÊR_w! IIIMIELJ!!!!IIMLJERL! XI!!!!!!! IDDIJE_Cw! JXCMEXJM!!!!IDCI_ER^!

5>!B'-*#! IRR!!!!! I_JMDEJX! I_X_CECX!!!!IMDMJELX! ! ! !

H,+#'!61:#'7!B'-*#! M!!!!!!!!! II^X_EC^! MCLRE^_^!!!!IXXJXEJL! IIL!!!!! IDMCDERX! JJILEXL_!!!!IDJCMELJ!

3$$B#'&,-9#7!&(9&%*#!B&:=#%,7! IRL!!!!! EDM^M^M^!!!! EDIM_RXC!!!!EDRL^_DJ! IRL! D! !

`'##%a#,!(-9-(#%(7! IRR! _DLEDJDM!w!!! CIJEI^XX!!!!!_J_EDCC! RR! IDIEC^JRw! ^LEMMCMX!!!!!IMLEDRR!

H,+#'!*$$B#'&,-9#!(-9-(#%(7! !L! IM! VREIJR^LI!!!!_ÊIJR^L! II^! MDELDXR! REJMJ^_M!!!!R_ECLRXL!

Food expenditure and self-consumption ! ! ! !

[$17#+$0(!F##G0:!;$$(!#OB#%(-,1'#! IXD!!!!! M_DERIII! _XIEICRR!!!!MXDECJM^! IXD!!!!! MLIE^^^L! MIJEMCDM!!!!^D_ELJDR!

<-*#!7#0;V*$%71=B,-$%!7+&'#! IXD! IDD! IDD!!!!!!!!!IDD! IXD! IDD! IDD!!!!!!!!!IDD!

a$$(0#7!7#0;V*$%71=B,-$%!7+&'#! IRD! ECJMIIRL! VECXL^DDI!!!!EXRMR_^M! ILR! IEIJRLD^! VEMLJ_D^X!!!!CEXLMÎ^!

?#2#,&60#7!7#0;V*$%71=B,-$%!7+&'#! IXD! XIE_____w! RRELCJC!!!!XÊD_RMR! IXD! RIE_D^^Lw! LLERMMD^!!!!RÊXLRDL!

/&B&:&!7#0;V*$%71=B,-$%!7+&'#! IXD! RJE_^w! RME_M^DI!!!!XME_^MJJ! IRJ! LRERJ__w! LIEL^RCR!!!!R_EJCJ_C!

5'#7+!;'1-,!7#0;V*$%71=B,-$%!7+&'#! IXD! ^_EJLIIIw! MXEXR^RM!!!!^JEDMLMJ! IXD! _JE^^^^Lw! _MEÎDJJ!!!!MMELDDIC!

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!Figure 1a Schooling probability and birth order.

Legend. Vertical axis: probability of going to school, horizontal axis birth order in the family.

Control group (dashed line); FT affiliated (continuous line).

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!!!Figure 1b Schooling probability and number of children in the family.

Legend. Vertical axis: probability of going to school, horizontal axis number of children in the

family. Control group (dashed line); FT affiliated (continuous line).

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! _I

Table 4. The effect of Fair Trade affiliation on schooling decisions: conditional fixed effect

logistic regression

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! _C

Table 5. The effect of Fair Trade affiliation on schooling decisions: random effect probit

regression (marginal effects)

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! __

Table 6. Robustness check: GMM estimates on the effects of FT affiliation on the Household

Schooling Index (HSI)

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! _M

Appendix 1 Variable legend

!Variables Description Variables Description

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Appendix 2 Questionnaire

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