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.
Poverty is prevalent in the small-farm sector of many developing countries. A large literature suggests that contract farming —a preharvest agreement between farmers and buyers— can facilitate smallholder market participation, improve household welfare, and promote rural development. These findings have influenced the development policy debate, but the external validity of the extant evidence is limited. Available studies typically focus on a single contract scheme or on a small geographical area in one country.