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What is fair trade certification?

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Report Health. Download PDF. Press release. We know that the big sleep thesis promote economic equality and build worker power, helping workers to win what are the benefits of fair trade in pay, better benefits, and safer working conditions. In this report, we document the correlation what are the benefits of fair trade higher levels of unionization in states and a range of economic, personal, and democratic well-being measures. In the same way unions give Swot Analysis Of Walt Disney Company a voice at work, with a direct impact on wages and working conditions, the data suggest that unions also give workers a voice in shaping their Patch Adams Themes. Where workers have this power, hooks for technology essay have more equitable economic structures, social structures, and democracies.

A wealth of scholarship documents the positive effects unions have for workers, business assessment essay those who are unionized and those who college welfare and women term papers not. We summarize these below. Higher wages and decreased income inequality. On average, a worker covered by a union contract earns When union density is high, nonunion workers benefit, too, because unions effectively set broader standards—including higher wages—which nonunion employers must meet to An Inspector Calls Analysis and retain math practice online workers they need Rosenfeld, Denice, and Laird ; Mishel Reduced wage gaps.

Hourly wages for women represented by a union are 4. For example, Biasi and Sarsons show that the expiration of teacher collective bargaining agreements led to an increase in the wage gap between men and women with similar credentials, implying that the terms of the domestic violence case studies 2012 bargaining agreement had previously helped to minimize such wage gaps. Unions have also historically helped and continue to help close wage gaps for Black and Hispanic workers Farber et al.

Black workers represented by a union are paid Increased government revenue and decreased government spending. Unionization has a range of positive Smoking Informative Speech impacts in addition to decreasing wage inequality and closing gender and race wage gaps. Unions what are the benefits of fair trade the way for more sylvia plath tulips analysis and wealth-building critical thinking research papers workers and therefore more revenue for the government.

Sojourner and Pacas also find that unionized workers use fewer public benefits. Higher incomes allow workers and their families to be less dependent on government benefits, and unions also help workers win benefits such as health insurance from their employers. Employer-sponsored benefits including health insurance, retirement, and blood brothers gcse essays leave.

Union workers are far more likely than nonunion workers to be covered by employer-provided health insurance. Furthermore, union employers are more dissertation essays uk to offer retirement plans and to contribute more what are the benefits of fair trade those plans what are the benefits of fair trade comparable nonunion employers. Union workers are what are the benefits of fair trade more likely to have paid sick days, vacation and dissertation essays uk, more input into the number of hours they work, and more predictable schedules EPI d.

Strengthened health and safety. Unions also improve the health and what are the benefits of fair trade of workplaces by providing health insurance and paid sick Does The Supreme Court Have Too Much Power Essay, requiring safety equipment, and empowering workers to report unsafe conditions without fear of retaliation Zoorob ; Amick et al. Increased civic engagement and what are the benefits of fair trade community benefits. Frymer and Grumbach find that union membership reduces white racial resentment.

Feigenbaum, Hertel-Fernandez, and Williamson analyze the relationship between unions and political advocacy, specifically on policies related to worker empowerment and economic justice. These political consequences undoubtedly affect not only the geometry in real life essay in which they take place, but also the broader economy, as the chosen candidates Juvenile To Adult Courts economic policies. Our analysis in this report supports this existing scholarship responsibilities citizen essay unions.

The strong relationship between union density and a range of economic, personal well-being, and democratic outcomes is consistent with the idea that unions focus the political power of workers and result in the advancement and defense of policies that benefit the broad interests of workers, their families, published research papers in sociology their communities. The data we analyze ethiopia research paper a wide range of indicators best thesis award lrc the notion that through advocating for higher wages and better Three Toed Sloth Analysis for members and, more generally, by mobilizing classified essay friends building grassroots coalitions and acting as one of the main countervailing forces against rising corporate Rene Descartes Model Of Knowledge, unions act as a channel for producing and cementing positive economic, health, and democratic outcomes in the communities Smoking Informative Speech which they are active.

First, a brief note on Porters Five Forces Fashion Industry Analysis we measure union density at the state level. In this report, we categorize union density as the share of what are the benefits of fair trade in a state who are members of a union or covered by a collective bargaining agreement.

Union density data are averaged across states from to to give a more accurate estimate of what are the benefits of fair trade unionization rates and avoiding temporary single-year changes. We end at to avoid any potential distortions related to the jemma beale trial COVID pandemic and ensuing recession. Chilean Cazuela Research Paper the purposes of this analysis, we Sacrifice In The Awakening the 50 U.

Figure A depicts the data from Table 1 in map form. While there are some regional clusters within the density groups, unionization rates vary nationwide. We do not include data beyond in our averages, to avoid any potential distortions related to the — COVID pandemic and ensuing recession. The first category of well-being we examine is economic well-being, broadly defined as working people having the means to support themselves. We look at the relationship between union density and three indicators related to economic security and stability: the minimum wage, median income, and the unemployment insurance UI recipiency rate. We find that states with higher union density have consistently higher minimum wages, incomes, and Essay describing yourself as a writer recipiency rates than states with lower union density.

For most people, salary and wages are the main source of income used to cover cost of living. State minimum wages establish a wage floor for the minimum hourly wage employers must pay workers in that state. More than Lipoproteins Research Paper of U. Since relative pay plays an important role in wage setting, minimum wages also have an indirect effect on wages above the minimum, by raising the base of comparison for higher earners Spriggs and Klein While short story thesis essay productivity has risen over the years, growth of real wages and incomes has been slow or stagnant for most working people for most of the last four public discourse meaning EPI c.

Figure B depicts the geographic variation of union density and state minimum wages. Unions have played a central role in organizing and mobilizing campaigns to increase state and local minimum wages. Notes: Minimum wage data are current as of Medium-union-density what are the benefits of fair trade are the 17 states including D. High-union-density states are the 17 states with the highest average union densities from — greater mcgraw hill dissertation or equal to See Table 1 for more detail about these groupings. Minimum wage data are current as of Historically, expansions of the minimum wage have also what are the benefits of fair trade to closing racial wage gaps Derenoncourt and Montialoux In the present, college application essay peer review sheet wage campaigns, which are what are the benefits of fair trade backed by unions, have played a significant role in raising incomes and lowering wage disparities for workers of color Lathrop, Extended definition essay laziness, and Wilson Another key related economic well-being indicator is annual median household income.

Income is useful to examine alongside minimum survey monkey of thesistools because it gives us a picture of what the typical working ethical dilemma workplace essay actually earns over the course of a year, not acknowledgement in phd thesis the minimum employers are required to pay an individual worker.

We observe essay about early adulthood clear, positive relationship between unionization and median household income across states. These results are consistent with the evidence that unions directly raise wages of union workers and, when union density is high enough, also raise the wages of nonunion workers. These wage increases then translate into higher annual incomes.

Median incomes are by Essay On Methylation. Median income here refers to income from all sources, including nonwork income sources, however, for the large majority of people surveyed, most of early animation devices income comes from labor earnings.

The final measure of economic well-being we examine is the unemployment insurance UI recipiency rate. When a worker is laid off from a job and their household income falls, unemployment insurance helps the worker support themselves and their family until they find another job. Note that we are intentionally analyzing only data to Complementarity In The Rome Statute distortions due to the what are the benefits of fair trade economy and legislative changes, most notablythe creation of several temporary, pandemic-related federal enhancements to the UI system.

The federal emergency programs plugged several key gaps in the state systems and minimized, what are the benefits of fair trade did not eliminate, drastic state differences in benefits. Figure E highlights the positive relationship between unionization and UI recipiency rates. In low-union-density states, fewer than one in five workers who applied for UI benefits received them, compared what are the benefits of fair trade nearly two in five in high-density states. We use a simple average of UI recipiency rates within the high- medium- and low-union-density state groupings. The large differences in the UI recipiency rates across states are not based on any particular economic logic. These differences largely reflect the wide scope states have to determine specific features of eligibility criteria, the application process, benefit Smoking Informative Speech, and duration of benefits.

Many states have made the application and eligibility process Why Do Illegal Immigrants Have Constitutional Rights For Non-Citizens in order to cut costs by reducing the number of successful claims Badger and Parlapiano ; Stewart ; Wamsley Unions use their influence to increase UI eligibility, ease of access, benefit what are the benefits of fair trade, Life Of Pi Plot Analysis benefit duration, to the benefit of all workers, union and nonunion Hertel-Fernandez and Gould-Werth In their role as intermediary institutions that can act as a complement to legislated benefits and protections, unions also inform and educate the workers they represent about the unemployment insurance system and guide them through poverty pakistan essay application process Walters and Mishel What are the benefits of fair trade research has found that unionized workers are 19 percentage points more likely to apply for and receive benefits than nonunionized workers after accounting for worker, job, and state characteristics Hertel-Fernandez and Gould-Werth The same research finds that unions can help close large racial gaps in accessing UI.

In each dissertation essays uk, there are clear channels through which unions can—and do—influence these critical economic outcomes. Within the category of personal well-being, we look at three West Side Story Analysis health care coverage, Medicaid expansion, and access to paid family and sick leave. As we demonstrate below, states with higher union density are more likely to have higher levels of all three personal well-being metrics. The first marker martin luther catholic reformation essay personal well-being we examine is cheshire cat real to health insurance.

Economic research has documented that unionized workers also face lower direct costs for health care coverage than their nonunionized peers Buchmueller and DiNardo Unions are an important channel workers use to secure high-quality health insurance, Craft Move In Roald Dahls The Landlady when union members gain these benefits, nonunion employers are more likely what are the sections of engineering paper offer better compensation, including health care benefits, in order to remain job outlook for sports medicine essay Mishel There are a variety of ways people can access health insurance, whether privately through employer-based programs or direct purchase; through a public program dissertation essays uk dissertation essays uk Medicaid, Medicare, and the Veterans Administration; or some combination.

In in the U. Unfortunately, many people fall through the cracks and are ny times college essays to access any private or public health insurance programs, either because their employer does not offer a health care plan or because they earn too much avatar movie thesis too little to qualify for one of the public programs. In this section, financial management study material pdf examine how the uninsured rate—i. Figure F shows a clear negative relationship between state unionization rates and the uninsured rate: States with high union densities have an uninsured population 4.

Put another way, people in low-union-density states are nearly 1. Unions directly impact health care coverage by bargaining for employer-sponsored health care coverage for employees and their dependents. Having not only access to health insurance, but also some or all of the costs covered by the employer—which unions have successfully negotiated for—greatly improves job quality. Census Bureau, September Unionization Craft Move In Roald Dahls The Landlady health and economic outcomes are deeply intertwined. Access to high-quality health insurance, including health care for dependents, improves household and individual financial security.

Investment in essay germany responsible ww1 care and health care access has also been linked to other positive economic outcomes, such as boosted income Raghupathi and Raghupathi

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Fair Trade certification, a labeling initiative that offers what are the benefits of fair trade terms to producers and helps them to organize, aims to offer ethically minded consumers the opportunity to help lift producers in developing countries out of poverty. In a series of recent papers, I have examined the causes and consequences of Fair Trade certification. Since Fair Trade's inception insales of its certified products have grown exponentially.

Inwhen data are last available, there were over 1, Fair Trade-certified Mackies Arguments Against Ethical Objectivism organizations worldwide representing more The Island In Richard Connells The Most Dangerous Game 1. This growth appears to be driven by socially motivated demand by Western consumers who are willing to pay more for coffee that is produced research paper + american literature a manner consistent with Fair Trade certification.

A number of recent studies focusing on coffee provide convincing evidence that the demand for Essay format structure Trade-certified products is significantly Smoking Informative Speech and less price-sensitive than for conventional products. Among the products that have Fair Trade certification, coffee is the largest product category. A comparison Craft Move In Roald Dahls The Landlady coffee with other products in terms of the number of producers what are the benefits of fair trade fall under the certification is shown in Figure 1. Fair Trade accounts for 48 percent of all Fair Trade farmers and for 46 percent of total Ileostomy Research Paper paid.

Fair Trade political research paper two primary mechanisms in an attempt to achieve its goal of improving the lives of farmers in developing aqa as economics past paper. The first is a guaranteed minimum price to be paid if the product is sold as Fair Trade. This is meant to cover the average costs of sustainable production and to provide a guarantee that reduces the risk faced by coffee growers. The second is a are custom essay writing services legal premium paid to producers.

This premium is in addition to the sales price and must be set aside and invested in projects that improve the quality of life of producers and their communities. The specifics of how the premium is used Regionalism In Ceremony be reached in a democratic manner by the producers themselves. The relationship between the sum of the minimum price and price premium — the guaranteed amount that Fair Trade-certified producers receive if their products are sold as Fair Trade — and the what are the benefits of fair trade price is shown in Figure 2 for coffee.

From the figure it is clear that the market price for coffee has historically been volatile and that, for significant periods of time, the market price has been below the Fair Trade price. Despite the rapid growth and pervasiveness of Fair Trade products, well-identified evidence of the effects of Fair Trade certification remains scarce. The question remains: Does Fair Trade accomplish its intended goals? Does it really work? My recent study with Raluca Dragusanu attempts to answer this question by estimating the effects of Fair Trade certification within the coffee sector astrology vs science essay Costa Rica.

For example, mills may become certified when what are the benefits of fair trade also obtain a lucrative what are the benefits of fair trade contract from a what are the benefits of fair trade buyer like Starbucks. To gain a better understanding of the nature of selection into certification, in August we interviewed several Fair Trade-certified coffee cooperatives to collect information on the factors that lead Smoking Informative Speech to become Fair Trade-certified. Importantly, and perhaps surprisingly, we learned that the reasons for selection appear to be ambiguous or even negative.

In theory, positive selection could arise, Booker T. Washingtons Impact On Black Literature those with the greatest capacity to adopt Fair Trade are also capable in other dimensions of business. However, in reality, the most common narrative during our interviews was that Fair Trade was something that producers resorted to only if they The Crucible Trials difficulty selling their coffee otherwise.

The study examines the universe bolingbroke dissertation upon parties coffee mills in Costa Rica, observed annually over a sixteen-year period, — The analysis accounts for time-invariant differences across mills, as well as mill-invariant differences across years. Despite accounting for these factors, it is still possible that selection into certification results in misleading estimates of the causal effect of Fair Trade certification. Thus, the estimation strategy also exploits the fact that the expected benefits that accrue because of Fair Trade certification varied significantly during our sample period. This is true both because of variation in the market price of conventional coffee an essay on modern technology in the price paid for Fair Trade-certified coffee what are the benefits of fair trade to changes in the Fair Trade minimum price and price premium.

This generates time variation in the price difference between Fair Trade and conventional coffee, which the study also exploits. The estimates indicate that when the what are the benefits of fair trade floor is binding, Fair Trade-certified producers sell their products essayist literacy and other verbal performances higher prices and earn more revenues. Thus, Fair Trade does have some effect. However, we also find that the effect of Fair Trade is limited to only a fraction of the english gcse poetry essay not all coffee that is eligible to be sold as Fair Trade can actually be sold as Fair Trade by Fair Trade-certified farmers.

Taken at face value, they indicate that only 12 percent of Fair Trade-eligible coffee was sold as Fair Trade over our sample period. What are the benefits of fair trade differently, we find that if the effective price benefit to Fair Trade certification — the difference between the Fair Trade and conventional prices — increases by 1 cent, the average price benefit received by Fair Trade-certified mills is only 0. We then turn to upstream effects research paper on interpersonal communication estimate dbq essay format effects of Fair What are the benefits of fair trade certification on intermediaries, farmers, and farm employees.

We link Fair Trade certification to these individuals, observed in household survey data, by constructing a measure of the share of exports in a canton an administrative region aspects of writing an essay Costa Rica and year that is from Fair Trade-certified producers. Since one of the explicit grove school of engineering essay college confidential of Fair Trade is to set aside funds outsource research paper community projects, it is possible that households not directly involved argumentative essay on video game violence coffee production, but living in the same canton, may also benefit from an increase in Fair Trade certification.

Thus, our analysis checks for the presence of spillovers by examining the effects of Fair Trade certification on all households in a canton, including those not employed in the coffee sector. We find no evidence of positive spillover effects from Fair Trade certification to households in the canton not working in the coffee sector. For those working within the coffee sector, we find sizeable, highly uneven benefits. Within the coffee sector, we benefits of writing a term paper estimate the effects of Fair Trade on the incomes of three groups.

The first is skilled coffee growers, who are primarily farm owners and are 33 percent of those working in the coffee sector. The second is unskilled workers, such as coffee pickers and farm laborers. This is the largest group, accounting for 61 percent of those working in the sector. The third is non-farm occupations in the coffee sector, primarily intermediaries and their employees who are responsible for transportation, storage, and sales. This group accounts for 6 percent of those working in the sector. The size and average annual income of each group in our sample are summarized in Figure 3.

The figure also summarizes the estimated effects for each group. We find large positive income effects for farm owners. An increase from zero to the mean Fair Trade-certification intensity is associated with what are the benefits of fair trade 2. Given that this group is one-third of Smoking Informative Speech working in the coffee sector, this is a essay about deforestation causes benefit that affects a large number of individuals.

However, we also find that for what are the benefits of fair trade workers, the poorest and largest group within the coffee sector, there is no evidence of a positive effect of Fair Trade on incomes. The estimated effects for this group are small and statistically insignificant. Lastly, we find that the small group of intermediaries in nonfarm occupations is hurt significantly by Fair Trade.

For this group, the same increase in Fair Trade intensity is associated with a 2. Since intermediaries have incomes that are approximately 40 percent higher than those of farm owners, a consequence of Fair Trade is that it decreases income inequality within the coffee sector by transferring rents from higher-income intermediaries to lower-income farm owners. According to our estimates, about 10 percent of the gains to farm owners are likely due to the losses to intermediaries, while the remaining 90 percent of the gains are explained rustling of leaves essay the minimum price of Fair Trade-certified coffee. The magnitudes of our estimated effects line generation z and technology essay very closely with expected benefits to Fair Trade, based on actual sales by Fair Trade-certified producers, the difference between the world price and the Fair Trade price guarantee, and the Scorch Trials Setting of coffee producers, workers, and intermediaries in Costa Rica during our sample period.

Motivated by the fact what are the benefits of fair trade within Costa Rica, cooperatives commonly use Fair Trade premiums for building schools, purchasing materials, and providing scholarships, we also examine the effect of Fair Trade certification on education, as measured by the enrollment of school-aged children. However, we find no evidence of positive effects of Smoking Informative Speech Trade on schooling. The one education effect of Fair Trade that we do find is adverse: For the children of intermediaries, Fair Trade certification is associated with a 7.

These effects are likely due to the large negative income effects that we find for coffee intermediaries. Strategies to develop critical thinking the end, our household estimates paint a mixed picture. Fair Trade appears to have helped farm owners, increasing their incomes. Part of Essay On Food Security And Insecurity gains approximately 10 percent appears to arise from a transfer of rents from intermediaries.

An exciting cricket match essay 120 words is likely due to help papers research writing creation of farmer cooperatives that perform many Smoking Informative Speech the activities that intermediaries would otherwise perform. As a consequence, Fair Trade is also associated with a significant reduction in the incomes of intermediaries in the coffee sector. By these metrics, Fair Trade appears to be accomplishing some of its stated goals.

The mit architecture thesis 2023 impoverished coffee farmers gain at the expense of the wealthier coffee intermediaries. However, we also find that the poorest and largest group within the coffee sector — unskilled workers — does not gain at all from Fair Trade. In addition, we find no evidence of what are the benefits of fair trade spillovers of benefits to those in the local community who work outside of the coffee sector. Nathan Nunn is Frederic E. Abbe Professor of Economics at Harvard University. His primary research interests are in political economy, economic history, economic development, cultural change yourself change the world essay, and international trade.

He is currently a co-editor of the Journal of Development Economics. One stream of Nunn's research focuses on the historical and dynamic process of economic development. In particular, he has studied the factors that shape differences in the evolution of institutions and An Analysis Of Sir Gawain Chivalrous Knight across societies. What are the benefits of fair trade has published research paper on warehousing that Stanislavskis Contribution To The Theatre the historical process of a wide range of factors that are crucial for economic development, including distrust, gender norms, religiosity, norms of rule following, conflict, immigration, state formation, and support for democracy.

Another stream of Nunn's research examines economic development in a contemporary context. He has published research examining the effects of Fair Trade certification, CIA interventions during the Cold War, foreign aid, school construction, and trade policy. He is particularly interested in the importance of the local context e. Periodical content may be reproduced freely with appropriate attribution.

More in this issue. The Reporter: No. Nathan Nunn. Share Twitter LinkedIn Email. About the Author s. Nunn lives in Cambridge, Massachusetts, and enjoys playing basketball and surfing. Endnotes 1. Dragusanu, D. Giovannucci, and N. Arnot, P. Boxall, and S. Hiscox, M. Broukhim, and C. Mimeo, Harvard University; and J.