Barriers to Capital Accumulation and the Incidence of Child Labor
AbstractThe World Bank documents an inverse relationship between GDP per capita and child labor participation rates. We construct a life-cycle model with human and physical capital in which parents make a time allocation choice for their child. The model considers two features that have shown potential in explaining differences in states of development across nations. These are a minimum consumption requirement, and barriers to physical capital accumulation. We find the introduction of capital barriers alone is not enough to replicate the aforementioned observation by the World Bank. However, we find the interplay of a minimum consumption requirement and barriers to capital may enhance our understanding of child labor and the poverty of nations. Additionally, we find support for policies aimed at reducing capital barriers as a means to reduce child labor.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 05/220.
Date of creation: 01 Nov 2005
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Other versions of this item:
- Richard C. Barnett & Marco A. Espinosa-Vega, 2011. "Barriers to Capital Accumulation and the Incidence of Child Labor," DEGIT Conference Papers c016_014, DEGIT, Dynamics, Economic Growth, and International Trade.
- NEP-ALL-2006-03-05 (All new papers)
- NEP-DEV-2006-03-05 (Development)
- NEP-PBE-2005-10-26 (Public 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.:
- Chatterjee, S. & Ravikumar, B., 1997.
"Minimum Consumption Requirements: Theoretical and Quantitative Implications for Growth and Distribution,"
97-15, University of Iowa, Department of Economics.
- Chatterjee, Satyajit & Ravikumar, B., 1999. "Minimum Consumption Requirements: Theoretical And Quantitative Implications For Growth And Distribution," Macroeconomic Dynamics, Cambridge University Press, vol. 3(04), pages 482-505, December.
- Satyajit Chatterjee & B. Ravikumar & B. Ravikumar, 1997. "Minimum consumptions requirements: theoretical and quantitative implications for growth and distribution," Working Papers 97-15, Federal Reserve Bank of Philadelphia.
- Diego Restuccia, 2004.
"Barriers to Capital Accumulation and Aggregate Total Factor Productivity,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 225-238, 02.
- Diego Restuccia, 2002. "Barriers to Capital Accumulation and Aggregate Total Factor Productivity," Working Papers diegor-02-01, University of Toronto, Department of Economics.
- Ngai, L. Rachel, 2004.
"Barriers and the transition to modern growth,"
Journal of Monetary Economics,
Elsevier, vol. 51(7), pages 1353-1383, October.
- Liwa Rachel Ngai, 2000. "Barriers and the Transition to Modern Growth," Econometric Society World Congress 2000 Contributed Papers 1578, Econometric Society.
- L. Rachel Ngai, 2003. "Barriers and the Transition to Modern Growth," CEP Discussion Papers dp0561, Centre for Economic Performance, LSE.
- 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.
- Saqib Jafarey & Sajal Lahiri, 1999. "Will trade sanctions reduce child labour? The role of credit markets," Economics Discussion Papers 500, University of Essex, Department of Economics.
- S. Rao Aiyagari & Jeremy Greenwood & Ananth Seshadri, 1999.
"Efficient investment in children,"
Discussion Paper / Institute for Empirical Macroeconomics
132, Federal Reserve Bank of Minneapolis.
- S. Rao Aiyagari & Jeremy Greenwood & Ananth Seshadri, 2001. "Efficient Investment in Children," RCER Working Papers 481, University of Rochester - Center for Economic Research (RCER).
- S. Rao Aiyagari & Jeremy Greenwood & Anath Seshardi, 2001. "Efficient investment in children," Working Paper 0105, Federal Reserve Bank of Cleveland.
- Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
- Robert J. Barro, 2013.
"Inflation and Economic Growth,"
Annals of Economics and Finance,
Society for AEF, vol. 14(1), pages 121-144, May.
- Ranjan, P., 1999.
""Credit Constraints and the Phenomenon of Child Labor","
98-99-12, California Irvine - School of Social Sciences.
- Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
- Das Satya P & Deb Rajat, 2006. "A Dynamic Analysis of Child Labor with a Variable Rate of Discount: Some Policy Implications," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-30, August.
- Stephen L. Parente & Richard Rogerson & Randall Wright, 2000. "Homework in Development Economics: Household Production and the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 680-687, August.
- Alvarez-Pelaez, Maria J. & Diaz, Antonia, 2005.
"Minimum consumption and transitional dynamics in wealth distribution,"
Journal of Monetary Economics,
Elsevier, vol. 52(3), pages 633-667, April.
- María J. Álvarez & Antonia Díaz, 2001. "Minimum Consumption And Transitional Dynamics In Wealth Distribution," Economics Working Papers we015013, Universidad Carlos III, Departamento de Economía.
- Rangazas, Peter, 2000. "Schooling and economic growth: A King-Rebelo experiment with human capital," Journal of Monetary Economics, Elsevier, vol. 46(2), pages 397-416, October.
- Jones, Charles I., 1994. "Economic growth and the relative price of capital," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 359-382, December.
- Atkeson, Andrew & Ogaki, Masao, 1996.
"Wealth-varying intertemporal elasticities of substitution: Evidence from panel and aggregate data,"
Journal of Monetary Economics,
Elsevier, vol. 38(3), pages 507-534, December.
- Atkeson, A. & Ogaki, M., 1991. "Wealth-Varying Intertemporal Elasticities of Substitution Evidence from Panel and Aggregate Data," RCER Working Papers 303, University of Rochester - Center for Economic Research (RCER).
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
- Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.