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Mortality risks, education and child labor

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  • Estevan, Fernanda
  • Baland, Jean-Marie

Abstract

In this paper, we investigate the role of young adult mortality on child labour and educational decisions. We argue that mortality risks are a major source of risks in returns to education in developing countries. We show that, in the absence of appropriate insurance mechanisms, the level of child labour is inefficient, but it can be too high or too low. It is too high when parents are not very altruistic or anticipate positive transfers from their children in the future. Uncertain returns to education, endogenous mortality or imperfect capital markets unambiguously increase child labour. When the level of child labour is inefficiently high, we also show that a cash transfer conditional on child's schooling can always restore efficiency regarding child labour.
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  • Estevan, Fernanda & Baland, Jean-Marie, 2007. "Mortality risks, education and child labor," Journal of Development Economics, Elsevier, vol. 84(1), pages 118-137, September.
    • Handle: RePEc:eee:deveco:v:84:y:2007:i:1:p:118-137
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    3. Josselin Thuilliez & Hippolyte d'Albis & Hamidou Niangaly & Ogobara Doumbo, 2017. "Malaria and Education: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies, vol. 26(4), pages 443-469.
    4. Carmen Camacho & Fernanda Estevan, 2023. "Intergeneration Human Capital Transmission and Poverty Traps," Working Papers halshs-04075431, HAL.
    5. Josselin Thuilliez & Hippolyte d'Albis & Hamidou Niangaly & Ogobara Doumbo, 2017. "Malaria and Education: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 26(4), pages 443-469.
    6. Thomas Baudin, 2012. "The Optimal Trade-Off Between Quality and Quantity with Unknown Number of Survivors," Mathematical Population Studies, Taylor & Francis Journals, vol. 19(2), pages 94-113, April.
    7. Ashlesha Datar & Arkadipta Ghosh & Neeraj Sood, 2007. "Mortality Risks, Health Endowments, and Parental Investments in Infancy: Evidence from Rural India," NBER Working Papers 13649, National Bureau of Economic Research, Inc.
    8. Lindskog, Annika, 2011. "Does a Diversification Motive Influence Children’s School Entry in the Ethiopian Highlands?," Working Papers in Economics 494, University of Gothenburg, Department of Economics.
    9. Markus Frölich & Andreas Landmann, 2018. "Effects of Insurance on Child Labour: Ex-Ante and Ex-Post Behavioural Changes," Journal of Development Studies, Taylor & Francis Journals, vol. 54(6), pages 1002-1018, June.
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    12. Rahul A. Sirohi, 2014. "Child Labour, Human Capital Accumulation and Foreign Aid," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 1-14, September.

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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I00 - Health, Education, and Welfare - - General - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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