Exploitation of Child Labor and the Dynamics of Debt Bondage
AbstractThis paper is concerned with the institution of debt bondage and child labor employment in the context of an agrarian economy with overlapping generations. The model explores the principal-agent interaction between landlords and tenants, and identifies a set of reasons why households put children to work in response to the need to service outstanding debts, only to realize that child labor work is " exploited", and households are made strictly worse off in general equilibrium. Debt bondage in one generation is further shown to leave spillover effects, and contribute to the cycle of debt, bonded child labor and poverty across generations. In this context, the effectiveness of trade sanctions as a policy response to bonded child labor is evaluated. Contrary to expectations, a trade ban can set off a sequence of increasing indebtedness among agrarian households that offset the intended (static) disincentives to employ child labor.
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.
Bibliographic InfoArticle provided by Springer in its journal Journal of Economic Growth.
Volume (Year): 9 (2004)
Issue (Month): 2 (06)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102931
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.:
- Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1, October.
- Anindita Mukherjee & Debraj Ray, 1992.
Boston University - Institute for Economic Development
29, Boston University, Institute for Economic Development.
- Galor, Oded & Zeira, Joseph, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(1), pages 35-52, January.
- Bardhan, Pranab K, 1983. "Labor-Tying in a Poor Agrarian Economy: A Theoretical and Empirical Analysis," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 501-14, August.
- Braverman, Avishay & Stiglitz, Joseph E, 1982. "Sharecropping and the Interlinking of Agrarian Markets," American Economic Review, American Economic Association, vol. 72(4), pages 695-715, September.
- Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1992. "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1965-2018, December.
- Basu, Kaushik, 1987. "Disneyland monopoly, interlinkage and usurious interest rates," Journal of Public Economics, Elsevier, vol. 34(1), pages 1-17, October.
- Arnab K. Basu & Nancy H. Chau, 2003. "Targeting Child Labor in Debt Bondage: Evidence, Theory, and Policy Implications," World Bank Economic Review, World Bank Group, vol. 17(2), pages 255-281, December.
- Matthias Doepke, 2001.
"Accounting for Fertility Decline During the Transition to Growth,"
UCLA Economics Working Papers
804, UCLA Department of Economics.
- Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09.
- Arnab K. Basu, 2002. "Oligopsonistic Landlords, Segmented Labor Markets, and the Persistence of Tied-Labor Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 438-453.
- Moshe Hazan & Binyamin Berdugo, 2005.
"Child Labor, Fertility and Economic Growth,"
Development and Comp Systems
- Carol Ann Rogers & Kenneth A. Swinnerton, 2003.
"A Theory of Exploitative Child Labor,"
Development and Comp Systems
- Arnab Basu, 2013. "Impact of rural employment guarantee schemes on seasonal labor markets: optimum compensation and workers’ welfare," Journal of Economic Inequality, Springer, vol. 11(1), pages 1-34, March.
- Chau, Nancy, 2009. "Sweatshop Equilibrium," IZA Discussion Papers 4363, Institute for the Study of Labor (IZA).
- Drusilla K. Brown & Alan Deardorff & Robert Stern, 2004.
"The Effects of Multinational Production on Wages and Working Conditions in Developing Countries,"
in: Challenges to Globalization: Analyzing the Economics, pages 279-330
National Bureau of Economic Research, Inc.
- Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2003. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," NBER Working Papers 9669, National Bureau of Economic Research, Inc.
- Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," Working Papers 483, Research Seminar in International Economics, University of Michigan.
- Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2002. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," Working Papers 486, Research Seminar in International Economics, University of Michigan.
- Strulik, Holger, 2010.
"School Attendance and Child Labor - A Model of Collective Behavior,"
Hannover Economic Papers (HEP)
dp-441, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Holger Strulik, 2013. "School Attendance And Child Labor—A Model Of Collective Behavior," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 246-277, 04.
- Maoyong Fan & Mimi Houston & Anita Alves Pena, 2014. "Determinants of child labor in the modern United States: Evidence from agricultural workers and their children and concerns for ongoing public policy," Economics Bulletin, AccessEcon, vol. 34(1), pages 287-306.
- Edmonds, Eric V., 2007.
IZA Discussion Papers
2606, Institute for the Study of Labor (IZA).
- Strulik, Holger, 2008.
"The Role of Poverty and Community Norms in Child Labor and Schooling Decisions,"
Proceedings of the German Development Economics Conference, Zurich 2008
42, Verein für Socialpolitik, Research Committee Development Economics.
- Strulik, Holger, 2008. "The Role of Poverty and Community Norms in Child Labor and Schooling Decisions," Hannover Economic Papers (HEP) dp-383, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Kouki Sugawara, 2011. "The worst forms of child labour: dynamic model and policy implication," Economics Bulletin, AccessEcon, vol. 31(2), pages 1910-1921.
- Basu, Arnab K., 2011. "Impact of Rural Employment Guarantee Schemes on Seasonal Labor Markets: Optimum Compensation and Workers' Welfare," IZA Discussion Papers 5701, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
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.