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Explaining cross-country differences in policy response to child labour

Author

Listed:
  • Sylvain E. Dessy
  • Désiré Vencatachellum

Abstract

We develop a model of child labour where poverty and inequality combine to determine policy response to child labour. If there are strategic complementarities between parents' decisions to educate their children and firms' technology choice, multiple school-enrolment equilibria arise. Only rich countries and those that are not `too' poor and have a low wealth inequality benefit from adopting child labour laws. This is because such laws commit an economy with either of those initial conditions to the full school-enrolment equilibrium which Pareto-dominates all other equilibria. Moreover, wealth redistribution is not sufficient to eliminate child labour.

Suggested Citation

  • Sylvain E. Dessy & Désiré Vencatachellum, 2003. "Explaining cross-country differences in policy response to child labour," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 1-20, February.
  • Handle: RePEc:cje:issued:v:36:y:2003:i:1:p:1-20
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    Cited by:

    1. Carol Ann Rogers & Kenneth A. Swinnerton, 2008. "A theory of exploitative child labor," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 20-41, January.
    2. Simone D’Alessandro & Tamara Fioroni, 2016. "Child labour and inequality," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 63-79, March.
    3. Caroline Orset, 2008. "A Theory of Child Protection against Kidnapping," Cahiers de recherche 0816, CIRPEE.
    4. Dessy, Sylvain E., 2003. "Endogenous Technical Progress and the Emergence of Child Labor Laws," Cahiers de recherche 0302, Université Laval - Département d'économique.
    5. Dessy, Sylvain Éloi, 2002. "A Theory of the Emergence of Compulsory Education Laws," Cahiers de recherche 0209, Université Laval - Département d'économique.
    6. Jayanta Sarkar & Dipanwita Sarkar, 2016. "Why Does Child Labor Persist With Declining Poverty?," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 139-158, January.
    7. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
    8. Michele Di Maio & Giorgio Fabbri, 2013. "Consumer boycott, household heterogeneity, and child labor," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1609-1630, October.
    9. repec:eee:cysrev:v:79:y:2017:i:c:p:50-56 is not listed on IDEAS
    10. 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.
    11. Carol Ann Rogers & Kenneth A. Swinnerton, 2004. "Does Child Labor Decrease When Parental Incomes Rise?," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 939-968, August.
    12. Satya P. Das & Rajat Deb, 2003. "Policies to combat child labor: A dynamic analysis," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-01, Indian Statistical Institute, New Delhi, India.
    13. Benoit Dostie & Désiré Vencatachellum, 2004. "Compulsory and Voluntary Remittances: Evidence from Child Domestic Workers in Tunisia," Cahiers de recherche 04-04, HEC Montréal, Institut d'économie appliquée.
    14. Jellal, Mohamed & Tarbalouti, Essaid, 2012. "Institutions éducation et travail des enfants
      [Institutions education and child labor]
      ," MPRA Paper 39384, University Library of Munich, Germany.
    15. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    16. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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