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Child labor and coordination failures

  • Dessy, Sylvain E.
  • Pallage, Stephane

In this paper, we show how coordination failures may explain the prevalence of child labor in developing countries. We do so within a simple game-theoretic setup. Child labor arises in our environment because of the lack of a coordination mechanism between parental decisions to invest in the human capital of their children and firm's decisions to invest in skill-intensive technology. Governmental policies that help coordinate expectations lead to the disappearance of child labor.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 65 (2001)
Issue (Month): 2 (August)
Pages: 469-476

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Handle: RePEc:eee:deveco:v:65:y:2001:i:2:p:469-476
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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