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Does Child Labor Decrease When Parental Incomes Rise?

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Author Info

  • Carol Ann Rogers

    (Georgetown University)

  • Kenneth A. Swinnerton

    (U.S. Department of Labor Bureau of International Labor Affairs)

Abstract

In the presence of two-sided altruism, i.e., when parents and children care about each other’s utility, increases in parental income need not always lead to increases in schooling and to decreases in child labor. This surprising result derives from the systematic way capital market constraints bind as parental income rises: child labor increases as soon as parental income rises by enough to eliminate transfers from children to parents.

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File URL: http://128.118.178.162/eps/dev/papers/0306/0306006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0306006.

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Length: 23 pages
Date of creation: 25 Jun 2003
Date of revision:
Handle: RePEc:wpa:wuwpdc:0306006

Note: Type of Document - ; pages: 23; figures: included
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Web page: http://128.118.178.162

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Keywords: child labor; intergenerational transfers; altruism;

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References

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  1. Kenneth A. Swinnerton & Carol Ann Rogers, 1999. "The Economics of Child Labor: Comment," Labor and Demography 9903002, EconWPA.
  2. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
  3. Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier.
  4. Bhalotra, Sonia, 2002. "Parent Altruism," Royal Economic Society Annual Conference 2002 25, Royal Economic Society.
  5. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
  6. Laitner, John, 1993. "Intergenerational and interhousehold economic links," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 5, pages 189-238 Elsevier.
  7. 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.
  8. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, eSocialSciences.
  9. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, vol. 13(2), pages 211-56, May.
  10. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  11. Donald Cox & Zekeriya Eser & Emmanuel Jimenez, 1996. "Motives for Private Transfers over the Life Cycle: An Analytical Framework and Evidence for Peru," Boston College Working Papers in Economics 327., Boston College Department of Economics.
  12. Parsons, Donald O & Goldin, Claudia, 1989. "Parental Altruism and Self-Interest: Child Labor among Late Nineteenth-Century American Families," Economic Inquiry, Western Economic Association International, vol. 27(4), pages 637-59, October.
  13. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  14. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography 9907003, EconWPA, revised 30 Jul 1999.
  15. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  16. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-18, October.
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Citations

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Cited by:
  1. Christian Ebeke, 2011. "The power of Remittances on the Prevalence of Child Labor," Working Papers halshs-00554258, HAL.
  2. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
  3. Sonia Bhalotra, 2004. "Early Childhood Investments in Human Capital: Parental Resources and Preferences," Bristol Economics Discussion Papers 04/562, Department of Economics, University of Bristol, UK.
  4. Garcia, Luis, 2006. "Oferta de trabajo infantil y el trabajo en los quehaceres del hogar
    [The supply of child labor and household work]
    ," MPRA Paper 31402, University Library of Munich, Germany.
  5. Tien Manh Vu, 2012. "Are daughters always the losers in the chore war? Evidence using household and twin data from Vietnam," OSIPP Discussion Paper 12E002, Osaka School of International Public Policy, Osaka University.
  6. David Dreyer Lassen & Helene Bie Lilleør, 2008. "Informal Institutions and Intergenerational Contracts: Evidence from Schooling and Remittances in Rural Tanzania," CAM Working Papers 2008-03, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  7. Basu, Kaushik, 2005. "Child labor and the law: Notes on possible pathologies," Economics Letters, Elsevier, vol. 87(2), pages 169-174, May.
  8. Diana Kruger & Rodrigo R. Soares & Matias Berthelon, 2010. "Household Choices of Child Labor and Schooling: A Simple Model with Application to Brazil," Working Papers 09-2010, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
  9. Eric V. Edmonds, 2003. "Does Child Labor Decline with Improving Economic Status?," NBER Working Papers 10134, National Bureau of Economic Research, Inc.
  10. Del Carpio, Ximena V., 2008. "Does child labor always decrease with income ? an evaluation in the context of a development program in Nicaragua," Policy Research Working Paper Series 4694, The World Bank.
  11. Eugenia Fotoniata & Thomas Moutos, 2013. "Product Quality, Informality, and Child Labor," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 268-283, 05.
  12. Heather Congdon Fors, 2012. "Child Labour: A Review Of Recent Theory And Evidence With Policy Implications," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 570-593, 09.
  13. Basu, Kaushik & Zarghamee, Homa, 2005. "Is Product Boycott a Good Idea for Controlling Child Labor?," Working Papers 05-14, Cornell University, Center for Analytic Economics.
  14. Sonia Bhalotra, 2004. "Parent Altruism, Cash Transfers and Child Poverty," Bristol Economics Discussion Papers 04/561, Department of Economics, University of Bristol, UK.

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