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Consumer boycott, household heterogeneity and child labour

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  • Michele DI MAIO

    ()
    (Department of Economic Studies, University of Naples Parthenope and HiCN)

  • Giorgio FABBRI

    ()
    (Department of Economic Studies, University of Naples Parthenope)

Abstract

Consumer boycott campaigns against goods produced using child labour are becoming increasingly popular. Notwithstanding, there is no consensus on which are the effects of such type of activism on child labour. If some agreement is to be found in the recent economic literature, it is that the boycott does not reduce child labour. We contribute to this debate presenting a simple model which shows, instead, that there are conditions under which a consumer product boycott does reduce child labour. We consider a small country two-factor economy populated by heterogeneous households. The boycott affects both the adult and the child labour markets. The income distribution determines how these changes affect child labour at the household level. We derive the conditions under which the consumer boycott reduces child labour also for some of the households whose' income is - before the boycott - under the subsistence level.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010036.

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Length: 20
Date of creation: 14 Oct 2010
Date of revision:
Handle: RePEc:ctl:louvir:2010036

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Keywords: Consumer product boycott; child labour; household heterogeneity; income distribution;

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  1. Fabrizio Zilibotti & Matthias Doepke, 2009. "Do International Labor Standards Contribute to the Persistence of the Child Labor Problem?," 2009 Meeting Papers 157, Society for Economic Dynamics.
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  14. Duryea, Suzanne & Arends-Kuenning, Mary, 2003. "School Attendance, Child Labor and Local Labor Market Fluctuations in Urban Brazil," World Development, Elsevier, vol. 31(7), pages 1165-1178, July.
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  16. Matthias Doepke, 2001. "Accounting for Fertility Decline During the Transition to Growth," UCLA Economics Working Papers 804, UCLA Department of Economics.
  17. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  18. Basu, Kaushik & Zarghamee, Homa, 2009. "Is product boycott a good idea for controlling child labor? A theoretical investigation," Journal of Development Economics, Elsevier, vol. 88(2), pages 217-220, March.
  19. Baland, Jean-Marie & Duprez, Cédric, 2009. "Are labels effective against child labor?," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1125-1130, December.
  20. Benabou, Roland, 1996. "Heterogeneity, Stratification, and Growth: Macroeconomic Implications of Community Structure and School Finance," American Economic Review, American Economic Association, vol. 86(3), pages 584-609, June.
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