Child Labor, Idiosyncratic Shocks, and Social Policy
AbstractIn this paper, we measure the welfare effects of banning child labor in an economy with strong idiosyncratic shocks to employment. We then design two different policies: an unemployment insurance program and a universal basic income system. We show that they can often lead to an endogenous elimination of child labor. We work within a dynamic, general equilibrium model calibrated to South Africa in the 1990s.
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Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 1115.
Date of creation: 2011
Date of revision:
Child labor; Idiosyncratic shocks; Unemployment insurance; Universal basic income; Heterogeneous agents; Child labor ban;
Find related papers by JEL classification:
- E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
- NEP-DGE-2011-06-25 (Dynamic General Equilibrium)
- NEP-IAS-2011-06-25 (Insurance Economics)
- NEP-LAB-2011-06-25 (Labour Economics)
- NEP-MAC-2011-06-25 (Macroeconomics)
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.:
- Luis Felipe López Calva, 2002. "A social stigma model of child labor," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 17(2), pages 193-217.
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