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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)

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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Bibliographic 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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Citations

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Cited by:
  1. Caroline Orset, 2008. "A Theory of Child Protection against Kidnapping," Cahiers de recherche, CIRPEE 0816, CIRPEE.
  2. Satya P. Das & Rajat Deb, 2003. "Policies to combat child labor: A dynamic analysis," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers, Indian Statistical Institute, New Delhi, India 04-01, Indian Statistical Institute, New Delhi, India.
  3. Rogers Carol Ann & Swinnerton Kenneth A, 2005. "A Theory of Exploitative Child Labor," Labor and Demography, EconWPA 0510006, EconWPA.
  4. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche, CIRPEE 0509, CIRPEE.
  5. Patrick M. Emerson & Shawn D. Knabb, 2007. "Fiscal Policy, Expectation Traps, And Child Labor," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 45(3), pages 453-469, 07.
  6. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants
    [Institutions education and child labor]
    ," MPRA Paper 39384, University Library of Munich, Germany.
  7. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche, CIRPEE 0323, CIRPEE.
  8. Jayanta Sarkar & Dipanwita Sarkar, 2012. "Why does child labour persist with declining poverty?," NCER Working Paper Series, National Centre for Econometric Research 84, National Centre for Econometric Research, revised 21 Nov 2012.
  9. Benoit Dostie & Désiré Vencatachellum, 2004. "Compulsory and Voluntary Remittances: Evidence from Child Domestic Workers in Tunisia," Cahiers de recherche, HEC Montréal, Institut d'économie appliquée 04-04, HEC Montréal, Institut d'économie appliquée.
  10. Michele Di Maio & Giorgio Fabbri, 2013. "Consumer boycott, household heterogeneity, and child labor," Journal of Population Economics, Springer, Springer, vol. 26(4), pages 1609-1630, October.

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