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Credit constraints and the phenomenon of child labor

  • Ranjan, Priya

This paper develops an overlapping generations general equilibrium model to show how the phenomenon of child labor can arise due to a combination of poverty and credit constraints. It further shows that in the presence of credit constraints, the incidence of child labor is positively related with inequality in the distribution of income, and presents some empirical evidence consistent with this result.

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File URL: http://www.sciencedirect.com/science/article/B6VBV-41TWJDK-4/2/5eb7d6ba9d01c307c183abf1972afea3
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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 64 (2001)
Issue (Month): 1 (February)
Pages: 81-102

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Handle: RePEc:eee:deveco:v:64:y:2001:i:1:p:81-102
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  1. Kenneth A. Swinnerton & Carol Ann Rogers, 1999. "The Economics of Child Labor: Comment," Labor and Demography 9903002, EconWPA.
  2. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc.
  3. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  4. Marc Nerlove & Assaf Razin & Efraim Sadka, 1988. "A Bequest-Constrained Economy: Welfare Analysis," NBER Working Papers 2779, National Bureau of Economic Research, Inc.
  5. 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.
  6. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424.
  7. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  8. Becker, Gary S & Murphy, Kevin M, 1988. "The Family and the State," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 1-18, April.
  9. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
  10. Galor, Oded & Zeira, Joseph, 1988. "Income Distribution and Macroeconomics," MPRA Paper 51644, University Library of Munich, Germany, revised 01 Sep 1989.
  11. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography 9907003, EconWPA, revised 30 Jul 1999.
  12. Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
  13. Chiu, W Henry, 1998. "Income Inequality, Human Capital Accumulation and Economic Performance," Economic Journal, Royal Economic Society, vol. 108(446), pages 44-59, January.
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