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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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  1. 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, Western Economic Association International, vol. 27(4), pages 637-59, October.
  2. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 81-102, February.
  3. Kenneth A. Swinnerton & Carol Ann Rogers, 1999. "The Economics of Child Labor: Comment," Labor and Demography, EconWPA 9903002, EconWPA.
  4. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography, EconWPA 9907003, EconWPA, revised 30 Jul 1999.
  5. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  6. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, American Economic Association, vol. 88(3), pages 412-27, June.
  7. Eric V. Edmonds, 2007. "Child Labor," NBER Working Papers 12926, National Bureau of Economic Research, Inc.
  8. Behrman, Jere R., 1999. "Labor markets in developing countries," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 43, pages 2859-2939 Elsevier.
  9. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, World Bank Group, vol. 13(2), pages 211-56, May.
  10. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(5), pages 901-18, October.
  11. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(3), pages 508-46, June.
  12. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 663-679, August.
  13. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, Elsevier, vol. 64(1), pages 99-105, July.
  14. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, Elsevier, vol. 55(1), pages 57-80, February.
  15. Bhalotra, Sonia, 2002. "Parent Altruism," Royal Economic Society Annual Conference 2002, Royal Economic Society 25, Royal Economic Society.
  16. Laitner, John, 1993. "Intergenerational and interhousehold economic links," Handbook of Population and Family Economics, Elsevier, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 5, pages 189-238 Elsevier.
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