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The Luxury Axiom, The Wealth Paradox, And Child Labor

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  • C. Simon Fan

    (Department of Economics, Lingnan University)

Abstract

Basu and Van (1998) present a fundamental framework of child labor with two important axioms: the luxury axiom and the substitution axiom. A number of empirical studies, however, reveal a ¡°wealth paradox¡±. The current paper has two aims. First, it develops a model that provides an explanation for ¡°the wealth paradox¡± in light of the luxury axiom and the substitution axiom. Second, it helps understand the relationship between the luxury axiom and the substitution axiom.

Suggested Citation

  • C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.
    • Handle: RePEc:jed:journl:v:36:y:2011:i:3:p:25-45
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    4. Julián Arteaga Vallejo, 2016. "Land, Child Labor, and Schooling: Longitudinal evidence from Colombia and Mexico," Documentos CEDE 14977, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Volkert, Jürgen & Strotmann, Harald & Moczadlo, Regina, 2014. "Sustainable Human Development: Corporate challenges and potentials. The case of Bayer CropScience's cotton seed production in rural Karnataka (India)," UFZ Discussion Papers 5/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    6. Lima, Luiz Renato & Mesquita, Shirley & Wanamaker, Marianne, 2015. "Child labor and the wealth paradox: The role of altruistic parents," Economics Letters, Elsevier, vol. 130(C), pages 80-82.
    7. Adrian Palacios-Mateo, 2023. "Education and household decision-making in Spanish mining communities, 1877–1924," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(2), pages 301-340, May.

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    More about this item

    Keywords

    Child Labor; Luxury Axiom; Wealth Paradox; Substitution Axiom;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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