Mortality risks, education and child labor
AbstractIn this paper, we investigate the role of young adult mortality on child labour and educational decisions. We argue that mortality risks are a major source of risks in returns to education in developing countries. We show that, in the absence of appropriate insurance mechanisms, the level of child labour is inefficient, but it can be too high or too low. It is too high when parents are not very altruistic or anticipate positive transfers from their children in the future. Uncertain returns to education, endogenous mortality or imperfect capital markets unambiguously increase child labour. When the level of child labour is inefficiently high, we also show that a cash transfer conditional on child's schooling can always restore efficiency regarding child labour.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 84 (2007)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I00 - Health, Education, and Welfare - - General - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ashenfelter, O. & Harmon, C. & Oosterbeek, H., 1999.
"A Review of Estimates of the Schooling/ Earnings Relationship, with tests for Publication Bias,"
99/20, College Dublin, Department of Political Economy-.
- Ashenfelter, Orley & Harmon, Colm & Oosterbeek, Hessel, 1999. "A review of estimates of the schooling/earnings relationship, with tests for publication bias," Labour Economics, Elsevier, vol. 6(4), pages 453-470, November.
- Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 2000. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," NBER Working Papers 7457, National Bureau of Economic Research, Inc.
- Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 1999. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," Working Papers 804, Princeton University, Department of Economics, Industrial Relations Section..
- Ravallion, Martin & Wodon, Quentin, 2000.
"Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy,"
Royal Economic Society, vol. 110(462), pages C158-75, March.
- Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
- Hazan, Moshe & Zoabi, Hosny, 2005.
"Does Longevity Cause Growth?,"
CEPR Discussion Papers
4931, C.E.P.R. Discussion Papers.
- Miles S. Kimball, 1989.
"Precautionary Saving in the Small and in the Large,"
NBER Working Papers
2848, National Bureau of Economic Research, Inc.
- Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
- Holger Strulik, 2002.
"Child Mortality, Child Labour, and Economic Development,"
Quantitative Macroeconomics Working Papers
20205, Hamburg University, Department of Economics.
- Holger Strulik, 2004. "Child mortality, child labour and economic development," Economic Journal, Royal Economic Society, vol. 114(497), pages 547-568, 07.
- Cunha, Flavio & Heckman, James J. & Navarro, Salvador, 2004.
"Separating Uncertainty from Heterogeneity in Life Cycle Earnings,"
IZA Discussion Papers
1437, Institute for the Study of Labor (IZA).
- Flavio Cunha & James Heckman & Salvador Navarro, 2005. "Separating uncertainty from heterogeneity in life cycle earnings," Oxford Economic Papers, Oxford University Press, vol. 57(2), pages 191-261, April.
- Flavio Cunha & James J. Heckman & Salvador Navarro, 2005. "Separating Uncertainty from Heterogeneity in Life Cycle Earnings," NBER Working Papers 11024, National Bureau of Economic Research, Inc.
- Cunha, Flavio & Heckman, James & Navarro, Salvador, 2004. "Separating uncertainty from heterogeneity in life cycle earnings," Working Paper Series 2005:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Lillard, L-A & Willis, R-J, 1997.
"Motives for Intergenerational Transfers. Evidence from Malaysia,"
97-04, RAND - Reprint Series.
- Lee Lillard & Robert Willis, 1997. "Motives for interqenerational transfers: Evidence from Malaysia," Demography, Springer, vol. 34(1), pages 115-134, February.
- Bedi, Arjun S. & Gaston, Noel, 1999. "Using variation in schooling availability to estimate educational returns for Honduras," Economics of Education Review, Elsevier, vol. 18(1), pages 107-116, February.
- Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-63, December.
- Blackorby, Charles & Bossert, Walter & Donaldson, David, 1995. "Intertemporal Population Ethics: Critical-Level Utilitarian Principles," Econometrica, Econometric Society, vol. 63(6), pages 1303-20, November.
- Jensen, Robert T., 2004. "Do private transfers 'displace' the benefits of public transfers? Evidence from South Africa," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 89-112, January.
- Forslund, Anders & Nordström Skans, Oskar, 2006.
"Swedish youth labour market policies revisited,"
Working Paper Series
2006:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Anders Forslund & Oskar Nordström Stans, 2006. "Swedish Youth Labour Market Policies Revisited," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 168-185.
- De Vos, Susan, 1985. "An Old-Age Security Incentive for Children in the Philippines and Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 33(4), pages 793-814, July.
- Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
- Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
- Esther Duflo, 2001.
"Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment,"
American Economic Review,
American Economic Association, vol. 91(4), pages 795-813, September.
- Esther Duflo, 2000. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," NBER Working Papers 7860, National Bureau of Economic Research, Inc.
- William Pouliot, 2003.
"Introducing Uncertainty into Baland and Robinson's Model of Child Labour,"
Carleton Economic Papers
03-11, Carleton University, Department of Economics, revised Feb 2006.
- Pouliot, William, 2006. "Introducing uncertainty into Baland and Robinson's model of child labour," Journal of Development Economics, Elsevier, vol. 79(1), pages 264-272, February.
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
- Razin, Assaf, 1976. "Lifetime Uncertainty, Human Capital and Physical Capital," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 439-48, September.
- Di Maio, Michele & Nandi, Tushar K., 2013. "The effect of the Israeli–Palestinian conflict on child labor and school attendance in the West Bank," Journal of Development Economics, Elsevier, vol. 100(1), pages 107-116.
- Landmann, Andreas & Frölich, Markus, 2013. "Can Microinsurance Help Prevent Child Labor? An Impact Evaluation from Pakistan," IZA Discussion Papers 7337, Institute for the Study of Labor (IZA).
- Lindskog, Annika, 2011. "Does a Diversification Motive Influence Children’s School Entry in the Ethiopian Highlands?," Working Papers in Economics 494, University of Gothenburg, Department of Economics.
- Thomas Baudin, 2012. "The Optimal Trade-Off Between Quality and Quantity with Unknown Number of Survivors," Mathematical Population Studies, Taylor & Francis Journals, vol. 19(2), pages 94-113, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.