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The Baland-Robinson Theory of Child Labor Efficiency: A Proposed Extension

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  • Feng Gao
  • Abu N.M. Wahid

Abstract

This paper is an extension of the Baland and Robinson theory of child labor efficiency which studies the problem of child labor using a two period model with a general equilibrium approach. To the original theory, we seek to incorporate a non-negative cost of education and an indicator for school quality. Our findings suggest that an increase in costs of education invariably raises the level of child labor. Furthermore, when school quality is poor, improvement in it can decrease the equilibrium level of child labor. In the welfare analysis we find that the conditions for education subsidies to be welfare-increasing suffice for a ban on child labor to be Pareto improving.

Suggested Citation

  • Feng Gao & Abu N.M. Wahid, 2009. "The Baland-Robinson Theory of Child Labor Efficiency: A Proposed Extension," The American Economist, Sage Publications, vol. 54(2), pages 72-81, October.
    • Handle: RePEc:sae:amerec:v:54:y:2009:i:2:p:72-81
    DOI: 10.1177/056943450905400208
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    References listed on IDEAS

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    1. 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.
    2. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    3. Tamura, Robert, 1996. "From decay to growth: A demographic transition to economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 20(6-7), pages 1237-1261.
    4. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
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