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Explaining cross‐country differences in policy response to child labour

Author

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  • Sylvain E. Dessy
  • Désiré Vencatachellum

Abstract

We develop a model of child labour where poverty and inequality combine to determine policy response to child labour. If there are strategic complementarities between parents’ decisions to educate their children and firms’ technology choice, multiple school‐enrolment equilibria arise. Only rich countries and those that are not ‘too’ poor and have a low wealth inequality benefit from adopting child labour laws. This is because such laws commit an economy with either of those initial conditions to the full school‐enrolment equilibrium which Pareto‐dominates all other equilibria. Moreover, wealth redistribution is not sufficient to eliminate child labour. JEL Classification: I20, O33 Une explication des différences d’un pays à l’autre dans la réaction des politiques au phénomène du travail des enfants Les auteurs développent un modèle de travail des enfants dans lequel les niveaux de pauvreté et d’inégalité se combinent pour déterminer les politiques. Si des complémentarités stratégiques existent entre les décisions des parents d’éduquer leurs enfants et le choix de technologie des entreprises, de nombreux équilibres impliquant divers niveaux d’inscription à l’école sont possibles. Seuls les pays riches, et ceux qui ne sont pas « trop » pauvres ou qui ont un degré d’inégalité de la richesse relativement bas, tirent profit de lois réglementant le travail des enfants. C’est le cas parce que de telles lois engagent une économie qui a ces caractéristiques à se diriger vers un équilibre d’inscription totale des enfants à l’école. Dans ces cas, il s’agit d’un équilibre qui domine au sens de Pareto tous les autres équilibres. On note de plus que la redistribution de la richesse ne suffit pas pour éliminer le travail des enfants.

Suggested Citation

  • Sylvain E. Dessy & Désiré Vencatachellum, 2003. "Explaining cross‐country differences in policy response to child labour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 1-20, March.
    • Handle: RePEc:wly:canjec:v:36:y:2003:i:1:p:1-20
    DOI: 10.1111/1540-5982.00001
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    References listed on IDEAS

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    1. Simone D’Alessandro & Tamara Fioroni, 2016. "Child labour and inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 63-79, March.
    2. Jayanta Sarkar & Dipanwita Sarkar, 2016. "Why Does Child Labor Persist With Declining Poverty?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 139-158, January.
    3. Michele Di Maio & Giorgio Fabbri, 2013. "Consumer boycott, household heterogeneity, and child labor," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1609-1630, October.
    4. Benoit Dostie & Désiré Vencatachellum, 2004. "Compulsory and Voluntary Remittances: Evidence from Child Domestic Workers in Tunisia," Cahiers de recherche 04-04, HEC Montréal, Institut d'économie appliquée.
    5. Patrick M. Emerson & Shawn D. Knabb, 2013. "Bounded rationality, expectations, and child labour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 900-927, August.
    6. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    7. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
    8. Kumar, D. Thresh & Palaniappan, Murugesan & Kannan, Devika & Shankar, K. Madan, 2014. "Analyzing the CSR issues behind the supplier selection process using ISM approach," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 268-278.

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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