Diversification and Labor Market Effects of the Mexican Coffee Crisis.

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Bibliographic Details
Title: Diversification and Labor Market Effects of the Mexican Coffee Crisis.
Authors: Padrón, Benigno Rodríguez1, Burger, Kees2
Source: World Development. Apr2015, Vol. 68, p19-29. 11p.
Subject Terms: Labor market, Coffee industry, Diversification in industry, Coffee sales & prices, Coffee growers, Farm size
Geographic Terms: Mexico
Abstract: Summary This paper analyses how coffee-producing households responded to the low coffee prices prevailing around 2003. We provide theory on differential responses in regions dedicated to coffee growing, compared to more diversified or better accessible regions. We show how labor market effects can explain why in the former regions value-adding activities (processing, certification) are undertaken while in the latter regions off-farm activities are adopted. Farm size favors value-adding activities as well as on-farm diversification. These findings call for policy responses to low prices that distinguish between specialized regions and diversified or well-connected regions. [ABSTRACT FROM AUTHOR]
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Database: Education Research Complete
Description
Abstract:Summary This paper analyses how coffee-producing households responded to the low coffee prices prevailing around 2003. We provide theory on differential responses in regions dedicated to coffee growing, compared to more diversified or better accessible regions. We show how labor market effects can explain why in the former regions value-adding activities (processing, certification) are undertaken while in the latter regions off-farm activities are adopted. Farm size favors value-adding activities as well as on-farm diversification. These findings call for policy responses to low prices that distinguish between specialized regions and diversified or well-connected regions. [ABSTRACT FROM AUTHOR]
ISSN:0305750X
DOI:10.1016/j.worlddev.2014.11.005