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A theory of exploitative child labor

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  • Carol Ann Rogers
  • Kenneth A. Swinnerton

Abstract

We develop a model in which some child labor is exploitative. Since exploited child laborers are paid less than the value of the marginal product of labor, there is scope for policy intervention to be Pareto improving. We illustrate this by showing that a system of inspection and fines targeted on exploitative child labor increases the aggregate output produced by children. We also establish that such intervention secures the release of children from exploitative working conditions, to their benefit. The distributional implications of the intervention among employers and among children who had not been exploited depends on whether capital is mobile internationally, and can depend on whether the elimination of exploitative child labor is partial or complete. Copyright 2008 , Oxford University Press.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:oxecpp:v:60:y:2008:i:1:p:20-41
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    File URL: http://hdl.handle.net/10.1093/oep/gpm019
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    Cited by:

    1. Björkman Nyqvist, Martina & Kuecken, Maria & La Ferrara, Eliana & Artadi, Elsa, 2018. "Understanding Human Trafficking Using Victim-Level Data," CEPR Discussion Papers 13279, C.E.P.R. Discussion Papers.
    2. Saibal Kar & Hamid Beladi, 2017. "A Model of Smuggling and Trafficking of Illegal Immigrants with a Host Country Policy," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 698-712, August.
    3. Del Carpio, Ximena V. & Loayza, Norman V. & Wada, Tomoko, 2016. "The Impact of Conditional Cash Transfers on the Amount and Type of Child Labor," World Development, Elsevier, vol. 80(C), pages 33-47.
    4. Irving Rosales, 2013. "Learn, sweat or steal: a theory of development and the activity of children," Working Papers 0613, Universidad Iberoamericana, Department of Economics.
    5. Sonnabend, Hendrik, 2015. "Good Intentions and Unintended Evil? Clients’ Punishment in the Market for Sex Services with Voluntary and Involuntary Providers," EconStor Preprints 110682, ZBW - Leibniz Information Centre for Economics.
    6. Chau, Nancy H., 2016. "On sweatshop jobs and decent work," Journal of Development Economics, Elsevier, vol. 121(C), pages 120-134.
    7. Bernd Beber & Christopher Blattman, 2010. "The Industrial Organization of Rebellion: The Logic of Forced Labor and Child Soldiering," HiCN Working Papers 72, Households in Conflict Network.
    8. Davies, Ronald B., 2005. "Abstinence from child labor and profit seeking," Journal of Development Economics, Elsevier, vol. 76(1), pages 251-263, February.
    9. Olivier Bargain & Delphine Boutin, 2021. "Minimum Age Regulation and Child Labor: New Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 35(1), pages 234-260.
    10. Caroline Orset, 2008. "A Theory of Child Protection against Kidnapping," Cahiers de recherche 0816, CIRPEE.
    11. Rauscher, Michael & Willert, Bianca, 2020. "Modern slavery, corruption, and hysteresis," European Journal of Political Economy, Elsevier, vol. 64(C).
    12. Del Carpio, Ximena V., 2008. "Does child labor always decrease with income ? an evaluation in the context of a development program in Nicaragua," Policy Research Working Paper Series 4694, The World Bank.
    13. Edmonds, Eric V. & Shrestha, Maheshwor, 2014. "You get what you pay for: Schooling incentives and child labor," Journal of Development Economics, Elsevier, vol. 111(C), pages 196-211.
    14. Del Carpio, Ximena V. & Loayza, Norman V., 2012. "The impact of wealth on the amount and quality of child labor," Policy Research Working Paper Series 5959, The World Bank.
    15. Lutfullah Lutf & Shahadat I Haq Yasini, 2018. "Factors Contributing to Child Labor in Afghanistan: A Case Study in Jalalabad City," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 348-372, September.
    16. Chau, Nancy H., 2009. "Sweatshop Equilibrium," IZA Discussion Papers 4363, Institute of Labor Economics (IZA).
    17. Carol Ann Rogers & Kenneth A Swinnerton, 2005. "Slave Redemption When it Takes Time to Redeem Slaves," Development and Comp Systems 0510006, University Library of Munich, Germany.
    18. Sonnabend, Hendrik & Stadtmann, Georg, 2018. "Good intentions and unintended evil? Adverse effects of criminalizing clients in paid sex markets with voluntary and involuntary prostitution," Discussion Papers 400, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    19. Jorge Soares, 2010. "Welfare Impact Of A Ban On Child Labor," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1048-1064, October.
    20. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
    21. Randall Akee & Arnab K. Basu & Arjun Bedi & Nancy H. Chau, 2014. "Transnational Trafficking, Law Enforcement, and Victim Protection: A Middleman Trafficker's Perspective," Journal of Law and Economics, University of Chicago Press, vol. 57(2), pages 349-386.
    22. Eric V. Edmonds, 2014. "Does minimum age of employment regulation reduce child labor?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-73, July.
    23. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE.
    24. Sylvain Dessy & Caroline Orset & Legrand Yémélé Kana, 2012. "The Global Fight against Child Trafficking: How Can It Be Won ?," Cahiers de recherche 1213, CIRPEE.

    More about this item

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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