Policy brief No. 3. Adequate nutrition is a crucial welfare dimension. Malnutrition at a young age can have severe con- sequences for a person’s development of human, social, and economic capital. Also in later phases of one’s life, malnutrition can severely affect health and restrict productivity as well as overall quality of life. Efforts to improve nutrition among rural populations, for example through more diversified diets, are therefore key components of many rural development agendas, especially in Africa where undernutrition is still a large public health prob- lem.
Farm workers in developing countries often belong to the poorest of the poor. They typically face low wages, informal working arrangements, and inadequate social protection. Written employment contracts with clearly defined rights and obligations could possibly help, but it is not clear how such contracts could be introduced and promoted in traditional peasant environments. To address this question, we develop and implement a randomized controlled trial with farmers in Côte d’Ivoire.
In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity.