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Consumer preferences for fair labour certification

Drichoutis, Andreas C. and Vassilopoulos, Achilleas and Lusk, Jayson and Nayga, Rodolfo M. (2015): Consumer preferences for fair labour certification.

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High profile cases of exploitative labour practices have increased concerns over agricultural working conditions. However, it is unclear to what extent the public is willing to trade-off fair working conditions for higher prices. We implement a large-scale survey to uncover consumer preferences for a food labeling system that certifies fair working conditions for the workers employed in agricultural production. We test for several methodological issues with respect to value elicitation and predictions of reference dependent theory. With our most conservative estimates, we find that consumers are willing to pay an average premium of 53 cents per 500 gr, 95\% CI [43.9, 62.3], for strawberries with fair labour certification.

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