Lucky Last? Intra-Sibling Allocation of Child Labor
This paper has two objectives. First, we construct a theoretical model which explains the empirical evidence that in developing countries, first-born children are more likely to be child laborers than later-born. Second, we explore the long-run consequences of child labor regulations within our framework. In our model, credit-constrained parents use the labor income from their first-born child to fund the schooling of later-born children. In the presence of such intra-sibling effects, child labor laws which decrease work opportunities for children may backfire, increasing child labor and reducing human capital in the long run.
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Volume (Year): 8 (2008)
Issue (Month): 1 (July)
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