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Explaining Cross-Country Differences in Policy Response to Child Labour

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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-enrollment equilibria arise. Only rich countries, and those which 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-enrollment equilibrium which Pareto-dominates all other equilibria. Moreover, wealth redistribution is not sufficient to eliminate child labour.

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  • Sylvain Dessy & Désiré Vencatachellum, 2002. "Explaining Cross-Country Differences in Policy Response to Child Labour," Cahiers de recherche 02-03, HEC Montréal, Institut d'économie appliquée.
    • Handle: RePEc:iea:carech:0203
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    Cited by:

    1. Carol Ann Rogers & Kenneth A. Swinnerton, 2008. "A theory of exploitative child labor," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 20-41, January.
    2. 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.
    3. Jinnat Ara & Dipanwita Sarkar & Jayanta Sarkar, 2021. "Like mother like daughter? Occupational mobility among children under asset transfer program in Bangladesh," QuBE Working Papers 061, QUT Business School.
    4. Caroline Orset, 2008. "A Theory of Child Protection against Kidnapping," Cahiers de recherche 0816, CIRPEE.
    5. Dessy, Sylvain E., 2003. "Endogenous Technical Progress and the Emergence of Child Labor Laws," Cahiers de recherche 0302, Université Laval - Département d'économique.
    6. Giorgio Bellettini & Carlotta Berti Ceroni, 2004. "Compulsory Schooling Laws and the Cure for Child Labour," Bulletin of Economic Research, Wiley Blackwell, vol. 56(3), pages 227-239, July.
    7. Dessy, Sylvain Éloi, 2002. "A Theory of the Emergence of Compulsory Education Laws," Cahiers de recherche 0209, Université Laval - Département d'économique.
    8. 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.
    9. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    10. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
    11. 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.
    12. 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.
    13. Nengroo, Aasif Hussain & Bhat, Gulam Mohammad, 2017. "Why child labour? Evidences from homebased carpet weaving industry of Kashmir," Children and Youth Services Review, Elsevier, vol. 79(C), pages 50-56.
    14. Patrick M. Emerson & Shawn D. Knabb, 2007. "Fiscal Policy, Expectation Traps, And Child Labor," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 453-469, July.
    15. Carol Ann Rogers & Kenneth A. Swinnerton, 2004. "Does Child Labor Decrease When Parental Incomes Rise?," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 939-968, August.
    16. 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.
    17. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants [Institutions education and child labor]," MPRA Paper 39384, University Library of Munich, Germany.
    18. Goto, Hideaki, 2011. "Social norms, inequality and child labor," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 806-814.
    19. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE.

    More about this item

    Keywords

    Child Labour; Poverty; Inequality; Child Labour Laws; Skill-biased Technology.;
    All these keywords.

    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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