26 June | 13:00 - 14:00
Labor contracting, where intermediaries provide farmers with migrant workers, plays a central role in meeting the demand for seasonal and flexible labor on labor-intensive farms. Yet this system poses under-researched challenges for both workers and farmers.
A few studies, mostly qualitative, link labor contracting to exploitative conditions, raising concerns about workers’ welfare (Sustainable Development Goal 8). However, poor working conditions are widespread in agriculture, and notably, quantitative comparisons between contract and non-contract workers are lacking.
For farmers, these precarious conditions pose a production risk if they lead to higher turnover. However, such links have so far been mainly documented in high-skilled or high-income settings.
Here, we address these gaps and provide the first empirical evidence on the links between contract labor, job quality, and turnover intention. We use matched worker–employer survey data—rarely available in agricultural research—from a well-suited case study: Nigeria’s labor-intensive tomato sector, where farmers recruit workers through personal networks and labor contractors.
Using decomposition analysis—commonly used to examine gender gaps—in a novel way, we assess disparities in working conditions between contract and non-contract workers.
Our findings reveal that contract labor is associated with structural disparities in working conditions. Complementary qualitative insights show how rules, norms, and practices embedded in labor contracting systems contribute to these structural inequalities.
Paradoxically, despite poorer conditions, contract workers report job satisfaction levels similar to non-contract workers—likely reflecting limited alternatives. Consequently, turnover intentions are comparable across both groups, with job satisfaction being the primary driver of turnover intentions.