IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v27y2018i3p267-292.html
   My bibliography  Save this article

The role of trade and offshoring in the determination of relative wages and child labour

Author

Listed:
  • Alessandro Cigno
  • Giorgia Giovannetti
  • Laura Sabani

Abstract

Incorporating family decisions in a two-period model of the world economy, we predict that trade liberalization raises the skill premium and reduces child labour in developing countries where the adult labour force is sufficiently well educated to attract production activities from abroad that will increase the demand for skilled relative to unskilled labour. Elsewhere, liberalization will reduce the skill premium, but it will not necessarily raise child labour. Our prediction is not rejected by the data, and it explains why child labour is negatively associated with trade openness in those developing countries where the labour force was relatively well educated when the liberalization took place, but not elsewhere.

Suggested Citation

  • Alessandro Cigno & Giorgia Giovannetti & Laura Sabani, 2018. "The role of trade and offshoring in the determination of relative wages and child labour," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(3), pages 267-292, April.
    • Handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:267-292
    DOI: 10.1080/09638199.2017.1378254
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2017.1378254
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2017.1378254?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Piriu, Andreea A., 2020. "Gender-Specific Effects of Import Competition on Individual Fertility Decisions," GLO Discussion Paper Series 713, Global Labor Organization (GLO).
    2. Andreea Alexandra Piriu, 2022. "Globalization and Gender‐Specific Patterns in Individual Fertility Decisions," Population and Development Review, The Population Council, Inc., vol. 48(1), pages 129-160, March.
    3. Oscar Afonso & Tiago Sequeira, 2023. "The Effect of Inflation on Wage Inequality: A North–South Monetary Model of Endogenous Growth with International Trade," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(1), pages 215-249, February.
    4. Cristian Ugarte & Marcelo Olarreaga & Gady Saiovici, 2023. "Child labour and global value chains," The World Economy, Wiley Blackwell, vol. 46(4), pages 941-968, April.
    5. Alessandro Cigno, 2024. "Can a ban on child labour be self-enforcing, and would it be efficient?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(3), pages 1-15, September.
    6. Zhao, Liqiu & Wang, Fei & Zhao, Zhong, 2021. "Trade liberalization and child labor," China Economic Review, Elsevier, vol. 65(C).

    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:27:y:2018:i:3:p:267-292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.