Trade and Child Labor: A General Equilibrium Analysis
AbstractThis paper augments the existing literature on trade and child labor by exploring the effects of terms-of-trade changes in the context of a three-good general equilibrium model, in which one of the goods is a nontraded good. We find that, under quasi-linear preferences, the effect of the terms of trade on child labor depends critically on the pattern of substitutability (or complementarity) in the excess demand functions between the export good and the nontraded good. We extend the analysis to the case in which factors move freely between the three goods, as in a Heckscher-Ohlin-type framework. Finally, we show that a balanced budget policy of taxing the education of skilled families to subsidize the education of unskilled families must reduce child labor without any effect on aggregate welfare.
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Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.
Volume (Year): 45 (2009)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024
child labor; nontraded goods; terms of trade; trade sanctions;
Other versions of this item:
- Bandyopadhyay, Subhayu & Bandyopadhyay, Sudeshna C., 2005. "Trade and Child Labor: A General Equilibrium Analysis," IZA Discussion Papers 1514, Institute for the Study of Labor (IZA).
- Subhayu Bandyopadhyay & Sudeshna C. Bandyopadhyay, 2007. "Trade and child labor: a general equilibrium analysis," Working Papers 2007-024, Federal Reserve Bank of St. Louis.
- Subhayu Bandyopadhyay & Sudeshna C. Bandyopadhyay, 2005. "Trade and Child Labor: A General Equilibrium Analysis," Working Papers 05-03 Classification- JEL, Department of Economics, West Virginia University.
- F1 - International Economics - - Trade
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
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.:
- Eric Edmonds & Nina Pavcnik, 2004.
"International Trade and Child Labor: Cross-Country Evidence,"
NBER Working Papers
10317, National Bureau of Economic Research, Inc.
- Edmonds, Eric V. & Pavcnik, Nina, 2006. "International trade and child labor: Cross-country evidence," Journal of International Economics, Elsevier, vol. 68(1), pages 115-140, January.
- Edmonds, Eric V & Pavcnik, Nina, 2004. "International Trade and Child Labour: Cross-Country Evidence," CEPR Discussion Papers 4309, C.E.P.R. Discussion Papers.
- 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.
- Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
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