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Rotten Parents and Child Labor

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Author Info

  • Antoine Bommier
  • Pierre Dubois

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Abstract

We show that taking into account the consequences of child labor on both childhood welfare and human capital investment, instead of focusing exclusively on the human capital dimension, brings new insights on the economic analysis of child labor. In particular, there are new sources of potential inefficiencies that appear when we assume that labor induces some disutility. In such a case, household decisions regarding child labor may indeed be inefficient even if household members are altruistic, transfers are not at a corner and there are no market imperfections. Also, the presence of child labor disutility leads to an equilibrium where the conditions for an exogenous reduction of child labor to be Pareto improving are less likely to be fulfilled. This paper stresses therefore the fact that economic analysis should not forget one of the most important aspects of child labor, namely that it does not make children happy.

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Bibliographic Info

Paper provided by Laboratoire d'Economie Appliquee, INRA in its series Research Unit Working Papers with number 0202.

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Length: 15 pages
Date of creation: Mar 2002
Date of revision:
Handle: RePEc:lea:leawpi:0202

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Related research

Keywords: child labor; rotten kid theorem; human capital; collective household; altruism.;

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Cited by:
  1. Chaudhuri, Sanjukta, 2009. "The School Going Child Worker: An Analysis of Poverty, Asset Inequality and Child Education in Rural India," MPRA Paper 19687, University Library of Munich, Germany.
  2. Elisabeth Gugl & Justin Leroux, 2009. "Share the Gain, Share the Pain? Almost Transferable Utility, changes in production possibilities, and bargaining solutions," Cahiers de recherche 09-05, HEC Montréal, Institut d'économie appliquée.
  3. Eric V. Edmonds, 2003. "Does Child Labor Decline with Improving Economic Status?," NBER Working Papers 10134, National Bureau of Economic Research, Inc.
  4. Edmonds, Eric V & Pavcnik, Nina, 2004. "International Trade and Child Labour: Cross-Country Evidence," CEPR Discussion Papers 4309, C.E.P.R. Discussion Papers.
  5. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, eSocialSciences.
  6. Alice Fabre & Stéphane Pallage, 2013. "Child Labor, Idiosyncratic Shocks, and Social Policy," Working Papers halshs-00913666, HAL.
  7. 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.
  8. Elise S. Brezis, 2012. "Population Dynamics and Economic Growth: Should We Adopt Different Frameworks for Poor and Rich Countries?," Working Papers 2012-04, Department of Economics, Bar-Ilan University.
  9. Sonia Bhalotra, 2004. "Parent Altruism, Cash Transfers and Child Poverty," Bristol Economics Discussion Papers 04/561, Department of Economics, University of Bristol, UK.
  10. Shunsuke Sakamoto, 2006. "Parental Attitudes toward Children and Child Labor: Evidence from Rural India," Hi-Stat Discussion Paper Series d05-136, Institute of Economic Research, Hitotsubashi University.
  11. Eric V. Edmonds, 2004. "Does Illiquidity Alter Child Labor and Schooling Decisions? Evidence from Household Responses to Anticipated Cash Transfers in South Africa," NBER Working Papers 10265, National Bureau of Economic Research, Inc.

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