Summary
The authors examined whether the Fairtrade certification has a positive effect on wage levels of plantation workers, and whether workers on Fairtrade-certified plantations are more satisfied with their jobs. They assess the effect of Fairtrade on workers’ hourly wages and their level of job satisfaction using primary survey data from eight different export-oriented pineapple companies in Ghana. Using a linear, linear mixed model, and instrumental variable approach to account for selection bias, they find that both hourly wages and job satisfaction are indeed higher on Fairtrade-certified plantations. higher wages, permanent employment contracts, training opportunities, company services such as medical care and paid leave as well as established labor unions on Fairtrade-certified plantations are some of the factors likely to contribute to higher job satisfaction in Fairtrade certified plantations.