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Does Child Labor Decrease When Parental Incomes Rise?

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  • Carol Ann Rogers
  • Kenneth A. Swinnerton

Abstract

In the presence of two-sided altruism, i.e., when parents and children care about each other’s utility, increases in parental income need not always lead to increases in schooling and to decreases in child labor. This surprising result derives from the systematic way capital market constraints bind as parental income rises: child labor increases as soon as parental income rises by enough to eliminate transfers from children to parents.
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Suggested Citation

  • Carol Ann Rogers & Kenneth A. Swinnerton, 2004. "Does Child Labor Decrease When Parental Incomes Rise?," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 939-968, August.
    • Handle: RePEc:ucp:jpolec:v:112:y:2004:i:4:p:939-968
    DOI: 10.1086/421175
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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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