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Opportunity, Inequality and the Intergenerational Transmission of Child Labour

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  • PATRICK M. EMERSON
  • SHAWN D. KNABB

Abstract

This paper presents a model in which opportunity differences within society result in child labour, where ‘opportunity’ is broadly defined but can include school quality, access to higher paying jobs, access to information about the returns to education and actual discrimination. If opportunity differences exist, child labour and poverty are shown to be symptomatic of this underlying socioeconomic condition. It is then shown that policies that ban child labour and/or introduce compulsory education laws can actually reduce dynastic welfare, increase poverty and further exacerbate income inequality within society, because they treat the symptom rather than the disease: the lack of opportunity.

Suggested Citation

  • Patrick M. Emerson & Shawn D. Knabb, 2006. "Opportunity, Inequality and the Intergenerational Transmission of Child Labour," Economica, London School of Economics and Political Science, vol. 73(291), pages 413-434, August.
    • Handle: RePEc:bla:econom:v:73:y:2006:i:291:p:413-434
    DOI: 10.1111/j.1468-0335.2006.00507.x
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    References listed on IDEAS

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    1. Fran??ois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2002. "Ex-ante Evaluation of Conditional Cash Transfer Programs: The Case of Bolsa Escola," William Davidson Institute Working Papers Series 516, William Davidson Institute at the University of Michigan.
    2. 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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    Cited by:

    1. Christophe J. Nordman & Smriti Sharma & Naveen Sunder, 2022. "Here Comes the Rain Again: Productivity Shocks, Educational Investments, and Child Work," Economic Development and Cultural Change, University of Chicago Press, vol. 70(3), pages 1041-1063.
    2. Patrick M. Emerson & Shawn D. Knabb, 2007. "Fiscal Policy, Expectation Traps, And Child Labor," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 453-469, July.
    3. Caio Piza & André Portela Souza & Patrick M Emerson & Vivian Amorim, 2024. "The Short- and Longer-Term Effects of a Child Labor Ban," The World Bank Economic Review, World Bank, vol. 38(2), pages 351-370.
    4. Lubna Naz & Abdul Salam Lodhi & Daniel W. Tsegai, 2020. "Parents’ Perception of Education and Choice of Childhood Activities: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(3), pages 335-355.
    5. Congdon Fors, Heather, 2024. "Child Labour Background, Challenges, and the Role of Research in Achieving Sustainable Development Goal 8.7," Working Papers in Economics 840, University of Gothenburg, Department of Economics.
    6. Fabre, Alice & Pallage, Stéphane, 2015. "Child labor, idiosyncratic shocks, and social policy," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 394-411.
    7. 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, September.
    8. Roos Haer & Gudrun Østby, 2023. "Aiding education? The effect of international aid on local educational enrolment in Nigeria," WIDER Working Paper Series wp-2023-103, World Institute for Development Economic Research (UNU-WIDER).
    9. Patrick M. Emerson & Shawn D. Knabb, 2013. "Bounded rationality, expectations, and child labour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(3), pages 900-927, August.
    10. Daniel R. Clark & Alisa B. Jno-Charles, 2025. "The Child Labor in Social Media: Kidfluencers, Ethics of Care, and Exploitation," Journal of Business Ethics, Springer, vol. 201(1), pages 35-62, October.
    11. Ali, Faizan & Jadoon, Atif Khan & Anwar, Mumtaz, 2025. "Psychological impacts of child labour in Punjab: An application of fairlie decomposition analysis," Children and Youth Services Review, Elsevier, vol. 179(C).
    12. Kamalika Chakraborty & Bidisha Chakraborty, 2018. "Publisher Correction: Low level equilibrium trap, unemployment, efficiency of education system, child labour and human capital formation," Journal of Economics, Springer, vol. 125(1), pages 105-105, September.
    13. Kitaura, Koji & Miyazawa, Kazutoshi, 2021. "Inequality and conditionality in cash transfers: Demographic transition and economic development," Economic Modelling, Elsevier, vol. 94(C), pages 276-287.
    14. L. Guarcello & S. Lyon, 2003. "Children's work and water access in Yemen," UCW Working Paper 53, Understanding Children's Work (UCW Programme).
    15. Emerson, Patrick M. & Souza, André Portela, 2008. "Birth Order, Child Labor, and School Attendance in Brazil," World Development, Elsevier, vol. 36(9), pages 1647-1664, September.
    16. Karina Acevedo González & Ra�l Quejada P�rez & Martha Y�nez Contreras, 2011. "Determinantes y consecuencias del trabajo infantil: un análisis de la literatura," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada.
    17. Busquet, Milande & Bosma, Niels & Hummels, Harry, 2021. "A multidimensional perspective on child labor in the value chain: The case of the cocoa value chain in West Africa," World Development, Elsevier, vol. 146(C).
    18. Lodhi, Abdul Salam & Tsegai, Daniel W. & Gerber, Nicolas, 2011. "Determinants of participation in child’s education and alternative activities in Pakistan," Discussion Papers 119110, University of Bonn, Center for Development Research (ZEF).

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