Marginal Revolution: Who benefits from fair trade? - The Diigo Meta page

• 15 Mar 07
  

  Anders Tunold Kråkenes

  coffee economics fairtrade

  • But fair trade also diverts some drinkers from Exploitation Coffee.  If the switching effect is large, wages for producers of Exploitation Coffee can fall.  Just as we have created two classes of market prices, so have we created two classes of market wages.
• 21 Dec 05
  

  perfectlyGoodInk

  "By splitting up the market, we are institutionalizing especially poor treatment for one class of workers. Furthermore the high profits from price discrimination imply that producers will be keen to continue such segregation rather than end it."

  economics blogPosts trade

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