A note on multiple general equilibria with child labor
It has been conjectured, using partial equilibrium analysis, that the market for child labour is likely to exhibit multiple equilibria, with children working in some but not in others. Such a result has important policy implications, especially concerning the use of a legislative ban on child labour. This paper shows that the multiple equilibrium result holds in a formal general equilibrium model. The paper develops the concept of a 'wage bill curve' and shows how this is a useful tool for studying the relation between household preference and multiple equilibria. It also clarifies the kind of welfare criteria needed to justify a legislative ban on child labour.
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- Basu, Kaushik, 1998.
"Child labor : cause, consequence, and cure, with remarks on International Labor Standards,"
Policy Research Working Paper Series
2027, The World Bank.
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- repec:esx:essedp:500 is not listed on IDEAS
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
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- Ranjan, Priya, 2001.
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Journal of Development Economics,
Elsevier, vol. 64(1), pages 81-102, February.
- Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
- Kenneth A. Swinnerton & Carol Ann Rogers, 1999.
"The Economics of Child Labor: Comment,"
Labor and Demography
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