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A Welfare Analysis of Child Labor Restriction: Intergenerational Perspectives

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  • Kunio Tsuyuhara

    (University of Calgary, Canada)

Abstract

I analyze the welfare implications of child labor restriction using an overlapping generations model with two-sided altruism. Efficient allocation of child time generally results in a positive level of child labor. Without a policy intervention, the steady state consists of an inefficiently high level of child labor because each generation discounts the value of the other generations' schooling more than the social optimal. A moderate restriction of child labor always improves future generations' welfare, but may lower the current adult generation's welfare. In general, the current adult generation always prefers less stringent restriction than the future generations, and an intergenerational conflict arises in terms of a policy intervention.

Suggested Citation

  • Kunio Tsuyuhara, 2014. "A Welfare Analysis of Child Labor Restriction: Intergenerational Perspectives," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 15-33, September.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:3:p:15-33
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    References listed on IDEAS

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    Cited by:

    1. Tang, Can & Zhao, Liqiu & Zhao, Zhong, 2018. "Child labor in China," China Economic Review, Elsevier, vol. 51(C), pages 149-166.

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    More about this item

    Keywords

    Child Labor; Human Capital; Two-Sided Altruism; Policy Intervention;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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