Introducing Uncertainty into Baland and Robinson's Model of Child Labour
Bland and Robinson (2000) [Baland, J.-M., Robinson, J.A., 2000. Is child labour inefficient? Journal of Political Economy 108 (4), 663–681] developed a model of child labour in which child labour can be inefficiently high when parents are credit constrained. We show here that, when return to human capital is uncertain and insurance are incomplete, the level of child labour can be inefficiently high even when parents are not credit constrained and bequests are interior.
|Date of creation:||15 Oct 2003|
|Date of revision:||Feb 2006|
|Publication status:||Published: Revised version in Journal of Development Economics, Vol. 79, No. 1 (February 2006), pp. 264–272|
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