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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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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
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Handle: RePEc:ctl:louvir:2010036

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

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  1. Matthias Doepke & Fabrizio Zilibotti, 2010. "Do international labor standards contribute to the persistence of the child labor problem?," IEW - Working Papers 467, Institute for Empirical Research in Economics - University of Zurich.
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  3. 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.
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  14. Wahba, J., 2006. "The influence of market wages and parental history on child labour and schooling in Egypt," Discussion Paper Series In Economics And Econometrics 0603, Economics Division, School of Social Sciences, University of Southampton.
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  16. Sylvain E. Dessy & Désiré Vencatachellum, 2003. "Explaining cross-country differences in policy response to child labour," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 1-20, February.
  17. Jackline Wahba, 2006. "The influence of market wages and parental history on child labour and schooling in Egypt," Journal of Population Economics, Springer, vol. 19(4), pages 823-852, October.
  18. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.
  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.
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