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Credit constraints and the phenomenon of child labor

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  • Ranjan, Priya

Abstract

This paper develops an overlapping generations general equilibrium model to show how the phenomenon of child labor can arise due to a combination of poverty and credit constraints. It further shows that in the presence of credit constraints, the incidence of child labor is positively related with inequality in the distribution of income, and presents some empirical evidence consistent with this result.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 64 (2001)
Issue (Month): 1 (February)
Pages: 81-102

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Handle: RePEc:eee:deveco:v:64:y:2001:i:1:p:81-102

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  1. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  2. Gary S. Becker & Kevin M. Murphy, . "The Family and the State," University of Chicago - Population Research Center 87-15, Chicago - Population Research Center.
  3. Kenneth A. Swinnerton & Carol Ann Rogers, 1999. "The Economics of Child Labor: Comment," Labor and Demography 9903002, EconWPA.
  4. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  5. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424.
  6. Parsons, Donald O & Goldin, Claudia, 1989. "Parental Altruism and Self-Interest: Child Labor among Late Nineteenth-Century American Families," Economic Inquiry, Western Economic Association International, vol. 27(4), pages 637-59, October.
  7. Nerlove, Marc & Razin, Assaf & Sadka, Efraim, 1988. "A bequest-constrained economy: Welfare analysis," Journal of Public Economics, Elsevier, vol. 37(2), pages 203-220, November.
  8. Chiu, W Henry, 1998. "Income Inequality, Human Capital Accumulation and Economic Performance," Economic Journal, Royal Economic Society, vol. 108(446), pages 44-59, January.
  9. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc.
  10. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
  11. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  12. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
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