Buying out child labor
In this paper we view child labor as a negative externality exerted by some poor countries on richer nations. The practice of child labor can thus be used by the poor to extract some form of compensation over time. We build a two-country growth model with international externality. We then calibrate our model to the United States and a poor country, solve it numerically and provide a quantitative description of the minimum transfers necessary to induce the poor to give up child labor. We then check their sustainability from the point of view of the rich. This is one of the first attempts at quantifying a moral issue. Dans ce papier, nous considérons le travail des enfants comme une externalité négative exercée par quelques pays pauvres sur les nations plus riches. La pratique du travail des enfants peut donc être utilisée par les pauvres pour extraire une forme de compensation à travers le temps. Nous construisons un modèle de croissance à deux pays avec une externalité internationale. Ensuite, nous étalonnons notre modèle aux Etats-Unis et un pays pauvre, le résolvons numériquement et donnons une description quantitative des transfers minimaux nécessaires pour inciter les pauvres à abandonner le travail des enfants. Puis nous vérifions la soutenabilité du point de vue des riches. Ceci est une des premières tentatives de quantifier un problème moral.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michel A. Robe & Stephane Pallage, 2000.
"Foreign Aid And The Business Cycle,"
Computing in Economics and Finance 2000
107, Society for Computational Economics.
- Saqib Jafarey & Sajal Lahiri, 2001. "Child Labour," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(1), pages 69-93, January.
- Stephane Pallage, 2000.
"On the Enforcement of Cooperative Environmental Policies,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 3(3), pages 572-596, July.
- Moshe Hazan & Binyamin Berdugo, 2005.
"Child Labor, Fertility and Economic Growth,"
Development and Comp Systems
- Kaushik Basu, 1999.
"Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards,"
Journal of Economic Literature,
American Economic Association, vol. 37(3), pages 1083-1119, September.
- Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
- Azariadis, Costas, 1996.
"The Economics of Poverty Traps: Part One: Complete Markets,"
Journal of Economic Growth,
Springer, vol. 1(4), pages 449-496, December.
- Costas Azariadis, 1996. "The Economics of Poverty Traps Part One: Complete Markets," Working Papers 9606, Centro de Investigacion Economica, ITAM.
- Galor, Oded & Tsiddon, Daniel, 1997.
"The Distribution of Human Capital and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 2(1), pages 93-124, March.
- Oded Galor & Daniel Tsiddon, 1996. "The Distribution of Human Capital and Economic Growth," Working Papers 1996-32, Brown University, Department of Economics.
- Galor, O. & Tsiddon, D., 1996. "The Distribution of Human Capital and Economic Growth," Papers 18-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Jafarey, Saqib & Lahiri, Sajal, 1999.
"Will trade sanctions reduce child labour? The role of credit markets,"
Economics Discussion Papers
10004, University of Essex, Department of Economics.
- Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
- George Psacharopoulos & Harry Anthony Patrinos, 1997. "Family size, schooling and child labor in Peru - An empirical analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(4), pages 387-405.
- repec:esx:essedp:500 is not listed on IDEAS
- Matthias Doepke, 2001.
"Accounting for Fertility Decline During the Transition to Growth,"
UCLA Economics Working Papers
804, UCLA Department of Economics.
- Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09.
- Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 501-526.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Karine S. Moe, 1998. "Fertility, Time Use, and Economic Development," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 699-718, July.
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
- Sylvain Dessy & Stephane Pallage, 2000.
"Child Labor and Coordination Failures,"
Cahiers de recherche CREFE / CREFE Working Papers
109, CREFE, Université du Québec à Montréal.
- Canagarajah, Sudharshan & Coulombe, Harold, 1997. "Child labor and schooling in Ghana," Policy Research Working Paper Series 1844, The World Bank.
- Robert J. Barro & Jong-Wha Lee, 1993.
"International Comparisons of Educational Attainment,"
NBER Working Papers
4349, National Bureau of Economic Research, Inc.
- Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
- Sylvain E. Dessy & Stéphane Pallage, 2005. "A Theory of the Worst Forms of Child Labour," Economic Journal, Royal Economic Society, vol. 115(500), pages 68-87, 01.
- E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
- Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994.
"Human Capital, Fertility, and Economic Growth,"
in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 323-350
National Bureau of Economic Research, Inc.
- Gary S. Becker & Kevin M. Murphy & Robert F. Tamura, 1990. "Human Capital, Fertility, and Economic Growth," NBER Working Papers 3414, National Bureau of Economic Research, Inc.
- Gary S. Becker & Kevin M. Murphy & Robert Tamura, "undated". "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
- Azariadis, Costas, 1975. "Implicit Contracts and Underemployment Equilibria," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1183-1202, December.
- Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
- Ray, Ranjan, 2000. "Child Labor, Child Schooling, and Their Interaction with Adult Labor: Empirical Evidence for Peru and Pakistan," World Bank Economic Review, World Bank Group, vol. 14(2), pages 347-367, May.
- Nardinelli, Clark, 1982. "Corporal punishment and children's wages in nineteenth century Britain," Explorations in Economic History, Elsevier, vol. 19(3), pages 283-295, July.
- Martin Shubik, 2001. "On Understanding Money," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(1), pages 95-120, January.
- Kyriacou, George A., 1991. "Level and Growth Effects of Human Capital: A Cross-Country Study of the Convergence Hypothesis," Working Papers 91-26, C.V. Starr Center for Applied Economics, New York University.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Ray, Ranjan, 1999. "How child labor and child schooling interact with adult labor," Policy Research Working Paper Series 2179, The World Bank.
- Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jmacro:v:29:y:2007:i:1:p:75-90. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.