Child Labor and Resistance to Change
AbstractWe study the interaction between technological innovation, investment in human capital and child labour. In a two-stage game, first firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labour depends on parameters related to technology, parents' altruism and the diffusion of firms' property. Child labour is due either to firms' reluctance to innovate or to households' unwillingness to educate, or both. In some cases, compulsory schooling laws or a ban on child labour are welfare-reducing, whereas a subsidy for innovation is the right tool to eliminate child labour and increase welfare. Copyright (c) The London School of Economics and Political Science 2005.
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Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 474.
Date of creation: 2003
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Other versions of this item:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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- NEP-ALL-2006-05-07 (All new papers)
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