IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

Child Labor, Idiosyncratic Shocks, and Social Policy

  • Alice Fabre

    ()

    (Aix Marseille University (Aix Marseille School of Economics), CNRS & EHESS)

  • Stéphane Pallage

    ()

    (CIRPEE and Département des Sciences Economiques, Université du Québec à Montréal)

In this paper, we provide a dynamic model with heterogeneous agents to study child labor in an economy with idiosyncratic shocks to employment. Households facing adverse shocks may use child labor as a buffer to smooth consumption. We show that the introduction of an unemployment insurance program and/or a universal basic income system help eliminate child labor endogenously in this context. A calibration to South Africa in the 1990s is provided.

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.

File URL: http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2013_-_nr_58.pdf
Download Restriction: no

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1358.

as
in new window

Length: 32 pages
Date of creation: 05 Nov 2013
Date of revision: 05 Nov 2013
Handle: RePEc:aim:wpaimx:1358
Contact details of provider: Web page: http://www.amse-aixmarseille.fr/en

More information through EDIRC

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.:

as in new window
  1. 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.
  2. Geeta Gandhi Kingdon & John Knight, 2004. "Race and the Incidence of Unemployment in South Africa," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 198-222, 05.
  3. Guarcelllo, Lorenzo & Mealli, Fabrizia & Rosati, Furio Camillo, 2003. "Household vulnerability and child labor : the effect of shocks, credit rationing and insurance," Social Protection and Labor Policy and Technical Notes 29136, The World Bank.
  4. Sylvain Dessy & Stephane Pallage, 2000. "Child Labor and Coordination Failures," Cahiers de recherche CREFE / CREFE Working Papers 109, CREFE, Université du Québec à Montréal.
  5. Moehling, Carolyn M., 2005. ": Youth Employment and Household Decision Making in the Early Twentieth Century," The Journal of Economic History, Cambridge University Press, vol. 65(02), pages 414-438, June.
  6. Pouliot, William, 2006. "Introducing uncertainty into Baland and Robinson's model of child labour," Journal of Development Economics, Elsevier, vol. 79(1), pages 264-272, February.
  7. Claus Chr. Pörtner, 1997. "Children as Insurance," Discussion Papers 97-12, University of Copenhagen. Department of Economics.
  8. Antoine Bommier & Pierre Dubois, 2002. "Rotten Parents and Child Labor," Research Unit Working Papers 0202, Laboratoire d'Economie Appliquee, INRA.
  9. Dammert, Ana C., 2008. "Child labor and schooling response to changes in coca production in rural Peru," Journal of Development Economics, Elsevier, vol. 86(1), pages 164-180, April.
  10. Andolfatto, David & Gomme, Paul, 1996. "Unemployment insurance and labor-market activity in Canada," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 44(1), pages 47-82, June.
  11. Patrick M. Emerson & Shawn D. Knabb, 2006. "Opportunity, Inequality and the Intergenerational Transmission of Child Labour," Economica, London School of Economics and Political Science, vol. 73(291), pages 413-434, 08.
  12. Geeta G. Kingdon & John B. Knight, 2001. "Unemployment in South Africa: The nature of the beast," CSAE Working Paper Series 2001-15, Centre for the Study of African Economies, University of Oxford.
  13. Eric V. Edmonds & Norbert Schady, 2009. "Poverty Alleviation and Child Labor," NBER Working Papers 15345, National Bureau of Economic Research, Inc.
  14. Matthias Doepke & Fabrizio Zilibotti, 2005. "The macroeconomics of child labor regulation," Staff Report 354, Federal Reserve Bank of Minneapolis.
  15. Mueller, Eva, 1984. "The value and allocation of time in rural Botswana," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 329-360.
  16. Kruger, Diana I., 2007. "Coffee production effects on child labor and schooling in rural Brazil," Journal of Development Economics, Elsevier, vol. 82(2), pages 448-463, March.
  17. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier.
  18. Shavell, Steven & Weiss, Laurence, 1979. "The Optimal Payment of Unemployment Insurance Benefits over Time," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1347-62, December.
  19. Grimm, Michael, 2008. "Food price inflation and schooling," Proceedings of the German Development Economics Conference, Zurich 2008 14, Verein für Socialpolitik, Research Committee Development Economics.
  20. Pallage, Stephane & Zimmermann, Christian, 2001. "Voting on Unemployment Insurance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 903-23, November.
  21. Baily, Martin Neil, 1978. "Some aspects of optimal unemployment insurance," Journal of Public Economics, Elsevier, vol. 10(3), pages 379-402, December.
  22. repec:esx:essedp:500 is not listed on IDEAS
  23. Emerson, Patrick M & Souza, Andre Portela, 2003. "Is There a Child Labor Trap? Intergenerational Persistence of Child Labor in Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 375-98, January.
  24. Basu, Kaushik, 2000. "The Intriguing Relation between Adult Minimum Wage and Child Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages C50-61, March.
  25. Stephane Pallage & Christian Zimmermann, 2000. "Buying Out Child Labor?," Cahiers de recherche CREFE / CREFE Working Papers 123, CREFE, Université du Québec à Montréal.
  26. Karan Singh, B, 2011. "Impact of adverse economic shocks on the Indian child labour market and the schooling of children of poor households," MPRA Paper 30958, University Library of Munich, Germany.
  27. E. Paul Durrenberger, 2005. "Labour," Chapters, in: A Handbook of Economic Anthropology, chapter 8 Edward Elgar Publishing.
  28. 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.
  29. Hansen, G.D. & Imrohoroglu, A., 1990. "The Role Of Unemployment Insurance In An Economy With Liquidity Constraints And Moral Hazard," Papers 21, California Los Angeles - Applied Econometrics.
  30. Goldin, Claudia, 1979. "Household and market production of families in a late nineteenth century American city," Explorations in Economic History, Elsevier, vol. 16(2), pages 111-131, April.
  31. 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.
  32. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
  33. Basu, Kaushik, 2002. "A note on multiple general equilibria with child labor," Economics Letters, Elsevier, vol. 74(3), pages 301-308, February.
  34. 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.
  35. Hopenhayn, Hugo A & Nicolini, Juan Pablo, 1997. "Optimal Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 412-38, April.
  36. 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.
  37. Friedrich Schneider & Dominik Enste, 2000. "Shadow Economies Around the World; Size, Causes, and Consequences," IMF Working Papers 00/26, International Monetary Fund.
  38. Jorge Soares, 2009. "Welfare Impact of a Ban on Child Labor," Working Papers 08-01, University of Delaware, Department of Economics.
  39. Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
  40. Pallage, Stephane & Zimmermann, Christian, 2005. "Heterogeneous labor markets and generosity towards the unemployed: an international perspective," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 88-106, March.
  41. 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.
  42. Marianne Bertrand & Douglas Miller & Sendhil Mullainathan, 2000. "Public Policy and Extended Families: Evidence from South Africa," NBER Working Papers 7594, National Bureau of Economic Research, Inc.
  43. Doepke, Matthias & Zilibotti, Fabrizio, 2009. "International Labor Standards and the Political Economy of Child Labor Regulation," CEPR Discussion Papers 7196, C.E.P.R. Discussion Papers.
  44. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
  45. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  46. S. Rao Aiyagari, 1994. "Uninsured Idiosyncratic Risk and Aggregate Saving," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 659-684.
  47. Beegle, Kathleen & Dehejia, Rajeev & Gatti, Roberta, 2005. "Why should we care about child labor? The education, labor market, and health consequences of child labor," Policy Research Working Paper Series 3479, The World Bank.
  48. Dehejia, Rajeev H & Gatti, Roberta, 2005. "Child Labor: The Role of Financial Development and Income Variability across Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 913-32, July.
  49. Rodrik, Dani, 2006. "Understanding South Africa's Economic Puzzles," CEPR Discussion Papers 5907, C.E.P.R. Discussion Papers.
  50. Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
  51. Patrick M. Emerson & Shawn D. Knabb, 2007. "Fiscal Policy, Expectation Traps, And Child Labor," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 453-469, 07.
  52. Delphine Boutin, 2011. "Envoi de fonds et allocation du temps des enfants au Niger : L’effet indirect des chocs négatifs," Larefi Working Papers 1105, Larefi, Université Bordeaux 4.
  53. Luis Felipe López Calva, 2002. "A social stigma model of child labor," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 17(2), pages 193-217.
  54. Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:aim:wpaimx:1358. 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: (Yves Doazan)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.