How to Deal with Covert Child Labor and Give Children an Effective Education, in a Poor Developing Country
AbstractBecause credit and insurance markets are imperfect and intrafamily transfers and how children use their time outside school hours are private information, the second-best policy makes school enrollment compulsory, forces overt child labor below its efficient level (if positive), and uses a combination of need- and merit-based grants, financed by earmarked taxes, to relax credit constraints, redistribute, and insure. Existing conditional cash transfer schemes can be made to approximate the second-best policy by incorporating these principles in some measure. Copyright 2012, Oxford University Press.
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Bibliographic InfoArticle provided by World Bank Group in its journal The World Bank Economic Review.
Volume (Year): 26 (2012)
Issue (Month): 1 ()
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Other versions of this item:
- Cigno, Alessandro, 2011. "How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country," IZA Discussion Papers 5663, Institute for the Study of Labor (IZA).
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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