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Child Labor and Aggregate Fluctuations

Author

Listed:
  • Stéphane Pallage

    (Université du Quebec à Montréal, Canada)

  • Alice Fabre

    (Université de la Mediterranee France)

Abstract

In this paper, we build a dynamic general equilibrium model with heterogeneous agents to measure the welfare effect of banning child labor in an economy with aggregate fluctuations and idiosyncratic shocks to employment. We then design an unemployment insurance system that generates the endogenous elimination of child labor.

Suggested Citation

  • Stéphane Pallage & Alice Fabre, 2010. "Child Labor and Aggregate Fluctuations," 2010 Meeting Papers 1037, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:1037
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    References listed on IDEAS

    as
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    12. Sylvain E. Dessy & Stéphane Pallage, 2005. "A Theory of the Worst Forms of Child Labour," Economic Journal, Royal Economic Society, vol. 115(500), pages 68-87, January.
    13. Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
    14. Stephane Pallage & Michel A. Robe, 2003. "On the Welfare Cost of Economic Fluctuations in Developing Countries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 677-698, May.
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