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Wage Determination of a Child Worker: A Theoretical Analysis

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  • Manash Ranjan Gupta

Abstract

A theory of wage determination of a child worker is presented using the consumption efficiency hypothesis and the Nash bargaining technique. The employer and the guardian of the child play the bargaining game. The model shows some interesting results regarding the split of the wage between the consumption of the child and the income of the guardian.

Suggested Citation

  • Manash Ranjan Gupta, 2000. "Wage Determination of a Child Worker: A Theoretical Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(2), pages 219-228, June.
    • Handle: RePEc:bla:rdevec:v:4:y:2000:i:2:p:219-228
    DOI: 10.1111/1467-9361.00090
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    Cited by:

    1. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2017. "Foreign Direct Investment and Domestic Child Labor," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 383-403, May.
    2. Sushobhan Mahata & Jonaki Sengupta & Ranjanendra Narayan Nag, 2021. "Child Labour and Trade-Related Price Policies in a Developing Economy: A Trade-Theoretical Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 685-704, September.
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    4. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2006. "Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 58(2), pages 129-150, April.
    5. Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2014. "Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?," Research in Economics, Elsevier, vol. 68(3), pages 277-291.
    6. Alessandro Maffei & Nikolai Raabe & Heinrich W. Ursprung, 2006. "Political Repression and Child Labour: Theory and Empirical Evidence," The World Economy, Wiley Blackwell, vol. 29(2), pages 211-239, February.
    7. Moussa KEITA, 2014. "Pauvreté et arbitrage entre scolarisation et travail des enfants au Mali," Working Papers 201418, CERDI.
    8. Soumya Sahin & Ambar Nath Ghosh, 2016. "Effect of Ban on Exports Containing Child Labour in a Dynamic Model in Presence of Imperfect Monitoring," Foreign Trade Review, , vol. 51(1), pages 26-45, February.
    9. Elias Dinopoulos & Laixun Zhao, 2007. "Child Labor and Globalization," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 553-579.
    10. Anu Rammohan, 2001. "Development of financial capital markets and the role of children as economic assets," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(1), pages 45-58.
    11. Dirk Krueger & Jessica Tjornhom Donohue, 2005. "On The Distributional Consequences Of Child Labor Legislation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 785-815, August.
    12. Sarbajit Chaudhuri, 2004. "Incidence of Child Labour, Free Education Policy, and Economic Liberalisation in a Developing Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(1), pages 1-25.
    13. Dehejia, Rajeev H. & Beegle, Kathleen & Gatti, Roberta, 2003. "Child labor, income shocks, and access to credit," Policy Research Working Paper Series 3075, The World Bank.
    14. Chaudhuri, Sarbajit, 2011. "Labor market reform and incidence of child labor in a developing economy," Economic Modelling, Elsevier, vol. 28(4), pages 1923-1930, July.
    15. Sonia Bhalotra, 2004. "Parent Altruism, Cash Transfers and Child Poverty," Bristol Economics Discussion Papers 04/561, School of Economics, University of Bristol, UK.

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