Dragusanu, Raluca. <br/><br/>
The Effects of Fair Trade Certification:  Evidence from Coffee Producers in Costa Rica / 
Raluca Dragusanu, Eduardo Montero, Nathan Nunn. 
 - Cambridge, Mass.  National Bureau of Economic Research  2018. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w24260 .
 - Working Paper Series (National Bureau of Economic Research)  no. w24260. .
<br/><br/> January 2018. 
<br/><br/> We study the effects of Fair Trade (FT) certification of coffee on producers and households in Costa Rica. Examining the production dynamics of all Costa Rican coffee mills from 1999-2014, we find that when global coffee prices are lower and the FT guaranteed minimum price is binding, FT certification is associated with a higher sales price, greater sales, and more revenues. We also find that certification reduces the probability of a mill closing down and exiting the industry. Looking at households, we find that certification is associated with higher incomes for farm owners. Part of this is due to a transfer of incomes from intermediaries whose incomes decrease due to FT. We find no effect of FT on unskilled workers, who are the more disadvantaged group within the coffee sector. 
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