How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country: An Optimal Taxation Problem with Moral Hazard
Given that credit and insurance markets are imperfect, and given also that intra-household transfers, and much of the work a child does, are private information, the second-best policy uses a combination of need and merit based education awards, together with a mix of taxes on parental income, and on the return to educational investment. It also makes school enrollment compulsory and, if the child wage rate is sufficiently high, sets a ceiling, decreasing in parental income, on overt child labour.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
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.:
- Dehejia, Rajeev H. & Beegle, Kathleen & Gatti, Roberta, 2003. "Child labor, income shocks, and access to credit," Policy Research Working Paper Series 3075, The World Bank.
- Hanushek, Eric & Charles Ka Yui Leung & Kuzey Yilmaz, 2002.
"Redistribution through Education and Other Transfer Mechanisms,"
Royal Economic Society Annual Conference 2002
94, Royal Economic Society.
- Hanushek, Eric A. & Leung, Charles Ka Yui & Yilmaz, Kuzey, 2003. "Redistribution through education and other transfer mechanisms," Journal of Monetary Economics, Elsevier, vol. 50(8), pages 1719-1750, November.
- Eric Hanushek & Charles Ka Yui Leung & Kuzey Yilmaz, 2001. "Redistribution through Education and Other Transfer Mechanisms," NBER Working Papers 8588, National Bureau of Economic Research, Inc.
- William R. Johnson, 1987. "Income Redistribution as Human Capital Insurance," Journal of Human Resources, University of Wisconsin Press, vol. 22(2), pages 269-280.
- Robert M. Townsend, "undated".
"Risk and Insurance in Village India,"
University of Chicago - Population Research Center
91-3a, Chicago - Population Research Center.
- Razin, Assaf, 1976. "Lifetime Uncertainty, Human Capital and Physical Capital," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 439-448, September.
- 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.
- Kodde, David A, 1986. "Uncertainty and the Demand for Education," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 460-467, August.
- Fuwa Nobuhiko & Ito Seiro & Kubo Kensuke & Kurosaki Takashi & Sawada Yasuyuki, 2012.
"How Does Credit Access Affect Children's Time Allocation?: Evidence from Rural India,"
Journal of Globalization and Development,
De Gruyter, vol. 3(1), pages 1-28, June.
- Fuwa, Nobuhiko & Ito, Seiro & Kubo, Kensuke & Kurosaki, Takashi & Sawada, Yasuyuki, 2009. "How does credit access affect children's time allocation? Evidence from rural India," IDE Discussion Papers 183, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Ravallion, Martin & Wodon, Quentin, 2000.
"Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy,"
Royal Economic Society, vol. 110(462), pages 158-175, March.
- Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
- Ranjan, P., 1999.
""Credit Constraints and the Phenomenon of Child Labor","
98-99-12, California Irvine - School of Social Sciences.
- Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
- William Pouliot, 2003.
"Introducing Uncertainty into Baland and Robinson's Model of Child Labour,"
Carleton Economic Papers
03-11, Carleton University, Department of Economics, revised Feb 2006.
- 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.
- Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-963, December.
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3077. 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: (Klaus Wohlrabe)
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.