Trade and child labor: a general equilibrium analysis
AbstractThis paper augments the existing literature on trade and child labor by exploring the effects of terms of trade changes in the context of a three good general equilibrium model, where one of the goods is a non-traded good. We find that under quasi-linear preferences the effect of the terms of trade on child labor depends critically on the pattern of substitutability (or complimentarity) in the excess demand functions between the export good and the non-traded good. We extend the analysis to the case where factors move freely between the three goods as in a Heckscher-Ohlin type framework. Finally, we show that a balanced budget policy of taxing the education of skilled families and subsidizing the education of unskilled families must reduce child labor without any impact on aggregate welfare.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2007-024.
Date of creation: 2007
Date of revision:
Other versions of this item:
- Subhayu Bandyopadhyay & Sudeshna C. Bandyopadhyay, 2009. "Trade and Child Labor: A General Equilibrium Analysis," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 45(1), pages 5-18, January.
- Subhayu Bandyopadhyay & Sudeshna C. Bandyopadhyay, 2005. "Trade and Child Labor: A General Equilibrium Analysis," Working Papers 05-03 Classification- JEL, Department of Economics, West Virginia University.
- Bandyopadhyay, Subhayu & Bandyopadhyay, Sudeshna C., 2005. "Trade and Child Labor: A General Equilibrium Analysis," IZA Discussion Papers 1514, Institute for the Study of Labor (IZA).
- F1 - International Economics - - Trade
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
- NEP-DEV-2007-06-23 (Development)
- NEP-INT-2007-06-23 (International Trade)
- NEP-LAB-2007-06-23 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
- Edmonds, Eric V. & Pavcnik, Nina, 2006.
"International trade and child labor: Cross-country evidence,"
Journal of International Economics,
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- Eric Edmonds & Nina Pavcnik, 2004. "International Trade and Child Labor: Cross-Country Evidence," NBER Working Papers 10317, National Bureau of Economic Research, Inc.
- Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 663-679, August.
- Saqib Jafarey & Sajal Lahiri, 1999.
"Will trade sanctions reduce child labour? The role of credit markets,"
Economics Discussion Papers, University of Essex, Department of Economics
500, University of Essex, Department of Economics.
- Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
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