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Child Labor and Globalization

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Listed:
  • Elias Dinopoulos
  • Laixun Zhao

Abstract

The article embeds child labor in a standard general equilibrium, two-sector model of a small open economy facing perfectly competitive markets, efficiency wages, and free trade. The modern sector uses skilled adult labor and capital, and the agrarian sector uses unskilled (child and adult) labor and skilled adult labor. Trade policies, foreign direct investment, or both that increase the modern-sector output reduce the incidence of child labor. Emigration of skilled (unskilled) workers reduces (increases) the incidence of child labor. Child-wage subsidies increase the incidence of child labor, and a ban on child labor benefits unskilled adult workers but hurts skilled workers.

Suggested Citation

  • Elias Dinopoulos & Laixun Zhao, 2007. "Child Labor and Globalization," Journal of Labor Economics, University of Chicago Press, vol. 25(3), pages 553-579.
    • Handle: RePEc:ucp:jlabec:v:25:y:2007:p:553-579
    DOI: 10.1086/513297
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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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