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Explaining Cross-Country Differences in Policy Response to Child Labour

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Author Info
Sylvain Dessy (Université Laval)
Désiré Vencatachellum () (IEA, HEC Montréal)

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Abstract

We develop a model of child labour where poverty and inequality combine to determine policy response to child labour. If there are strategic complementarities between parents’ decisions to educate their children and .firms’ technology choice, multiple school-enrollment equilibria arise. Only rich countries, and those which are not “too” poor and have a low wealth inequality, benefit from adopting child labour laws. This is because such laws commit an economy with either of those initial conditions to the full school-enrollment equilibrium which Pareto-dominates all other equilibria. Moreover, wealth redistribution is not sufficient to eliminate child labour.

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Publisher Info
Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 02-03.

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Length: 38 pages
Date of creation: May 2002
Date of revision:
Handle: RePEc:iea:carech:0203

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Related research
Keywords: Child Labour; Poverty; Inequality; Child Labour Laws; Skill-biased Technology.;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Satya P. Das & Rajat Deb, 2003. "Policies to combat child labor: A dynamic analysis," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-01, Indian Statistical Institute, New Delhi, India. [Downloadable!]
  2. Carol Ann Rogers & Kenneth A. Swinnerton, 2003. "A Theory of Exploitative Child Labor," Development and Comp Systems 0306005, EconWPA. [Downloadable!]
    Other versions:
  3. Caroline Orset, 2008. "A Theory of Child Protection against Kidnapping," Cahiers de recherche 0816, CIRPEE. [Downloadable!]
  4. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE. [Downloadable!]
  5. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE. [Downloadable!]
  6. Benoit Dostie & Désiré Vencatachellum, 2004. "Compulsory and Voluntary Remittances: Evidence from Child Domestic Workers in Tunisia," Cahiers de recherche 04-04, HEC Montréal, Institut d'économie appliquée. [Downloadable!]
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