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Contract farming (CF) is seen as a tool for creating new market opportunities hence increasing incomes for smallholder farmers. Critics, however, argue that CF is likely to pass risks to small scale farmers, thus favouring large scale farmers at the expense of smallholder farmers. The purpose of this paper is to examine the effect of CF on smallholder farmers’ income using a case study of avocado farmers in Kandara district in Kenya.

The study uses data collected from 100 smallholder avocado farmers in Kandara district in Kenya and employs an instrumental variable model (Probit-2SLS) to control for endogeneity in participation in the contract and examine the effect of CF on household, farm and avocado income.

The results indicate that participation in CF is not sufficient to improve household, farm and avocado income. Question remains regarding efficient implementation of CF arrangements to promote spill over effects on other household enterprises.

The research was carried out using farmers in Kandara district in Kenya as a case study, findings might therefore not reflect the status of CF in all countries.

The paper contributes to the growing debate on the effect of value chain upgrading strategies such as contracting on smallholder farmers’ welfare. The form of contracting studied in this paper differs from the standard contracts in that the key stakeholders (producers) are loosely enjoined in the contract through officials of their groups.

Self-employment is often viewed as a more desirable work arrangement than working as an employee for a firm. Women are pushed into self-employment due to organizational factors, such as a shrinking workforce or limited job opportunities, while being attracted to self-employment by the many psychological and social benefits (e.g., independence, flexibility, work-life balance, job satisfaction). Despite more women moving into self-employment, this type of employment still has different financial consequences for men and women. This article investigates whether a pay gap exists for self-employed women after controlling for industry, occupation, and hours worked and seeks to quantify the gender wage gap for the self-employed. A sample of 467 self-employed independent contractors in the United States was examined from the 2008 National Study of the Changing Workforce. The results indicate a large financial disparity between self-employed women and men. On average men earned $54,959 as compared to women who earned on average $28,554. Regardless of the parity in education, work experience, number of hours worked, or occupations, women earn less than men in self-employment. Findings suggest the existence of the glass cage‐a phenomenon whereby self-employed women earn significantly less than self-employed men with limited abilities to narrow the economic inequality.