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Child Labor and Globalization

Author

Listed:
  • Elias Dinopoulos
  • Laixun Zhao

Abstract

The article embeds child labor in a standard general equilibrium, two-sector model of a small open economy facing perfectly competitive markets, efficiency wages, and free trade. The modern sector uses skilled adult labor and capital, and the agrarian sector uses unskilled (child and adult) labor and skilled adult labor. Trade policies, foreign direct investment, or both that increase the modern-sector output reduce the incidence of child labor. Emigration of skilled (unskilled) workers reduces (increases) the incidence of child labor. Child-wage subsidies increase the incidence of child labor, and a ban on child labor benefits unskilled adult workers but hurts skilled workers.

Suggested Citation

  • Elias Dinopoulos & Laixun Zhao, 2007. "Child Labor and Globalization," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 553-579.
  • Handle: RePEc:ucp:jlabec:v:25:y:2007:p:553-579
    DOI: 10.1086/513297
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Irving Rosales, 2013. "Learn, sweat or steal: a theory of development and the activity of children," Working Papers 0613, Universidad Iberoamericana, Department of Economics.
    2. Genicot, Garance & Mayda, Anna Maria & Mendola, Mariapia, 2016. "The Impact of Migration on Child Labor: Theory and Evidence from Brazil," IZA Discussion Papers 10444, Institute for the Study of Labor (IZA).
    3. Kaushik Basu & Homa Zarghamee, 2008. "Product boycott a good idea for controlling child labor? A theoretical investigation," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 08-09, Indian Statistical Institute, New Delhi, India.
    4. Anna De Paoli & Mariapia Mendola, 2014. "International Labor Mobility and Child Work in Developing Countries," Development Working Papers 365, Centro Studi Luca d'Agliano, University of Milano, revised 07 Apr 2014.
    5. Eugenia Fotoniata & Thomas Moutos, 2013. "Product Quality, Informality, and Child Labor," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 268-283, May.
    6. repec:dau:papers:123456789/5832 is not listed on IDEAS
    7. Burhan, Nik Ahmad Sufian & Sidek, Abdul Halim & Ibrahim, Saifuzzaman, 2016. "Eradicating the Crime of Child Labour in Africa: The Roles of Income, Schooling, Fertility, and Foreign Direct Investment," MPRA Paper 77250, University Library of Munich, Germany.
    8. Ahmed, Syed Shujaat & Haider, Waqas & Khan, Dilawar, 2012. "Determinants of Child Labor in Khyber Pakhtunkhwa: An Econometric Analysis," MPRA Paper 73526, University Library of Munich, Germany.
    9. repec:bla:worlde:v:40:y:2017:i:4:p:678-702 is not listed on IDEAS
    10. Jean-Marc Siroën, 2012. "Core labour standards and exports," Working Papers DT/2012/18, DIAL (Développement, Institutions et Mondialisation).
    11. repec:dau:papers:123456789/10660 is not listed on IDEAS
    12. Viaene, Jean-Marie & Zhao, Laixun, 2015. "Inspection, testing errors and trade in tainted products," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 99-116.
    13. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Learning by doing, low level equilibrium trap, and effect of domestic policies on child labour," MPRA Paper 74712, University Library of Munich, Germany.
    14. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Child labour ban versus Education subsidy in a model with learning by doing effect in unskilled work," MPRA Paper 74203, University Library of Munich, Germany.
    15. Mariapia Mendola, 2016. "How does migration affect child labor in sending countries?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 286-286, August.
    16. repec:laf:wpaper:201102 is not listed on IDEAS
    17. Estevez, Kristian, 2011. "Nutritional efficiency wages and child labor," Economic Modelling, Elsevier, vol. 28(4), pages 1793-1801, July.
    18. Donado, Alejandro. & Wälde, Klaus., 2012. "Globalization, trade unions and labour standards in the North," ILO Working Papers 994694483402676, International Labour Organization.
    19. Francisco Gonzalez & Irving Rosales, 2016. "The case against child labor bans," Working Papers 1601, University of Waterloo, Department of Economics, revised Jan 2016.
    20. De Paoli, Anna & Mendola, Mariapia, 2014. "International Labor Mobility and Child Work in Developing Countries," IZA Discussion Papers 8066, Institute for the Study of Labor (IZA).
    21. repec:dau:papers:123456789/3202 is not listed on IDEAS
    22. Basu, Kaushik & Zarghamee, Homa, 2009. "Is product boycott a good idea for controlling child labor? A theoretical investigation," Journal of Development Economics, Elsevier, vol. 88(2), pages 217-220, March.
    23. Jean-Marie Cardebat & Alexandru Dimitrescu, 2011. "Social Responsibility of the countries and their international trade : A gravitational approach," Larefi Working Papers 1102, Larefi, Université Bordeaux 4.
    24. repec:ilo:ilowps:469448 is not listed on IDEAS
    25. Le, Huong Thu & Homel, Ross, 2015. "The impact of child labor on children's educational performance: Evidence from rural Vietnam," Journal of Asian Economics, Elsevier, vol. 36(C), pages 1-13.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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