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Child Labour and Inequality

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  • Simone D\'Alessandro

    ()
    (University of Pisa)

  • Tamara Fioroni

    ()
    (Department of Economics (University of Verona))

Abstract

This paper focuses on the evolution of child labour, fertility and human capital in an economy characterized by two types of workers, low- and high-skilled. This heterogeneity allows an endogenous analysis of inequality generated by child labour. More specifically, according to empirical evidence, we offer an explanation for the emergence of a vicious cycle between child labour and inequality. The basic intuition behind this result arises from the interdependence between child labour and fertility decisions. Furthermore, we investigate how child labour regulation policies can influence the welfare of the two groups in the short run, and the income distribution in the long run. We find that conflicts of interest may arise between the two groups

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Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 17/2013.

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Date of creation: Oct 2013
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Handle: RePEc:ver:wpaper:17/2013

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Keywords: Child Labour; Fertility; Human capital; Inequality;

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  1. Dessy, Sylvain E. & Pallage, Stephane, 2001. "Child labor and coordination failures," Journal of Development Economics, Elsevier, vol. 65(2), pages 469-476, August.
  2. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  3. DE LA CROIX, David & DOEPKE, Matthias, . "Inequality and growth: why differential fertility matters," CORE Discussion Papers RP -1676, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. David de la Croix & Matthias Doepke, 2002. "Public versus Private Education when Differential Fertility Matters," UCLA Economics Working Papers 816, UCLA Department of Economics.
  5. Moshe Hazan & Binyamin Berdugo, 2005. "Child Labor, Fertility and Economic Growth," Development and Comp Systems 0507002, EconWPA.
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  8. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
  9. Kremer, Michael & Chen, Daniel L, 2002. " Income Distribution Dynamics with Endogenous Fertility," Journal of Economic Growth, Springer, vol. 7(3), pages 227-58, September.
  10. Matthias Doepke & Fabrizio Zilibotti, 2005. "The Macroeconomics of Child Labor Regulation," American Economic Review, American Economic Association, vol. 95(5), pages 1492-1524, December.
  11. Basu, Kaushik, 1999. "The intriguing relation between adult minimum wage and child labor," Policy Research Working Paper Series 2173, The World Bank.
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  13. Matthias Doepke, 2001. "Accounting for Fertility Decline During the Transition to Growth," UCLA Economics Working Papers 804, UCLA Department of Economics.
  14. Dilip Mookherjee & Silvia Prina & Debraj Ray, 2012. "A Theory of Occupational Choice with Endogenous Fertility," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 1-34, November.
  15. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  16. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  17. Galor, Oded & Tsiddon, Daniel, 1997. " The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
  18. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  19. 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.
  20. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  21. Sylvain E. Dessy & Stéphane Pallage, 2005. "A Theory of the Worst Forms of Child Labour," Economic Journal, Royal Economic Society, vol. 115(500), pages 68-87, 01.
  22. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
  23. Stokey, Nancy L, 1996. " Free Trade, Factor Returns, and Factor Accumulation," Journal of Economic Growth, Springer, vol. 1(4), pages 421-47, December.
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  1. Child labor and fertility
    by Economic Logician in Economic Logic on 2013-11-04 15:58:00

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