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Does Child Labor Decrease When Parental Incomes Rises

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Author Info
Carol Rogers & Kenneth A. Swinnerton () (Department of Economics, Georgetown University)

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Abstract

In the presence of two-sided altruism, i.e., when parents and children care about each other's utility, increases in parental income need not always lead to increases in schooling and to decreases in child labor. This surprising result derives from the systematic way capital market constraints bind as parental income rises: child labor increases as soon as parental income rises by enough to eliminate transfers from children to parents.

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Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~02-02-02.

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Handle: RePEc:geo:guwopa:gueconwpa~02-02-02

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Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July. [Downloadable!] (restricted)
  2. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June. [Downloadable!] (restricted)
  3. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February. [Downloadable!] (restricted)
    Other versions:
  4. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, Oxford University Press, vol. 13(2), pages 211-56, May.
  5. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  6. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September. [Downloadable!] (restricted)
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  7. Parsons, Donald O & Goldin, Claudia, 1989. "Parental Altruism and Self-Interest: Child Labor among Late Nineteenth-Century American Families," Economic Inquiry, Oxford University Press, vol. 27(4), pages 637-59, October.
  8. Kenneth A. Swinnerton & Carol Ann Rogers, 1999. "The Economics of Child Labor: Comment," American Economic Review, American Economic Association, vol. 89(5), pages 1382-1385, December. [Downloadable!] (restricted)
    Other versions:
  9. Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier. [Downloadable!] (restricted)
  10. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August. [Downloadable!] (restricted)
  11. Eric V. Edmonds, 2007. "Child Labor," IZA Discussion Papers 2606, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February. [Downloadable!] (restricted)
    Other versions:
  13. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography 9907003, EconWPA, revised 30 Jul 1999. [Downloadable!]
  14. Bhalotra, Sonia, 2002. "Parent Altruism," Royal Economic Society Annual Conference 2002 25, Royal Economic Society. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Helene Bie Lilleør, 2008. "Can Future Uncertainty Keep Children Out of School?," CAM Working Papers 2008-06, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
  2. Basu, Kaushik & Zarghamee, Homa, 2005. "Is Product Boycott a Good Idea for Controlling Child Labor?," Working Papers 05-14, Cornell University, Center for Analytic Economics. [Downloadable!]
  3. Diana Kruger & Rodrigo R. Soares & Matias Berthelon, 2007. "Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil," IZA Discussion Papers 2776, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Sonia Bhalotra, 2004. "Parent Altruism, Cash Transfers and Child Poverty," Bristol Economics Discussion Papers 04/561, Department of Economics, University of Bristol, UK. [Downloadable!]
  5. Helene Bie Lilleør, 2008. "Human Capital Diversification within the Household: Findings from Rural Tanzania," CAM Working Papers 2008-04, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
  6. Satya Das & Rajat Deb, 2006. "A Dynamic Analysis of Child Labor with a Variable Rate of Discount: Some Policy Implications," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 5(1), pages 1562-1562. [Downloadable!] (restricted)
  7. Sonia Bhalotra, 2004. "Early Childhood Investments in Human Capital: Parental Resources and Preferences," Bristol Economics Discussion Papers 04/562, Department of Economics, University of Bristol, UK. [Downloadable!]
  8. Eric Bonsang & Ousman Faye, 2005. "Working or Schooling: What Determine Children’s Time Allocation in Senegal ?," CREPP Working Papers 0508, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège. [Downloadable!]
  9. David Dreyer Lassen & Helene Bie Lilleør, 2008. "Informal Institutions and Intergenerational Contracts: Evidence from Schooling and Remittances in Rural Tanzania," CAM Working Papers 2008-03, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
  10. Del Carpio, Ximena V., 2008. "Does child labor always decrease with income ? an evaluation in the context of a development program in Nicaragua," Policy Research Working Paper Series 4694, The World Bank. [Downloadable!]
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