Child labor and coordination failures
AbstractIn this paper, we show how coordination failures may explain the prevalence of child labor in developing countries. We do so within a simple game-theoretic setup. Child labor arises in our environment because of the lack of a coordination mechanism between parental decisions to invest in the human capital of their children and firm's decisions to invest in skill-intensive technology. Governmental policies that help coordinate expectations lead to the disappearance of child labor.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 65 (2001)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- I20 - Health, Education, and Welfare - - Education - - - General
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- D60 - Microeconomics - - Welfare Economics - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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