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Mortality risks and child labor

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  • ESTEVAN, Fernanda
  • BALAND, Jean-Marie

Abstract

In this paper, we investigate the role of young adult mortality on child labor and educational decisions. We show that, in the absence of appropriate insurance mechanisms, the level of child labor is inefficient. It may be too high if parents are not very altruistic and anticipate positive transfers from their children in the future, but it can also be too low, in particular when parents expect to make positive transfers to their children in the future. Imperfect capital markets unambiguously increase the equilibrium level of child labor. We also show that a cash transfer conditional on child's schooling can always restore efficiency regarding child labor.

Suggested Citation

  • ESTEVAN, Fernanda & BALAND, Jean-Marie, 2005. "Mortality risks and child labor," LIDAM Discussion Papers CORE 2005049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2005049
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    3. Annika Lindskog, 2018. "Diversification of Human Capital Investments in Rural Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(4), pages 676-692, September.
    4. Josselin Thuilliez & Hippolyte d'Albis & Hamidou Niangaly & Ogobara Doumbo, 2017. "Malaria and Education: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies, vol. 26(4), pages 443-469.
    5. Carmen Camacho & Fernanda Estevan, 2023. "Intergeneration Human Capital Transmission and Poverty Traps," PSE Working Papers halshs-04075431, HAL.
    6. Josselin Thuilliez & Hippolyte d'Albis & Hamidou Niangaly & Ogobara Doumbo, 2017. "Malaria and Education: Evidence from Mali," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 26(4), pages 443-469.
    7. Di Maio, Michele & Nandi, Tushar K., 2013. "The effect of the Israeli–Palestinian conflict on child labor and school attendance in the West Bank," Journal of Development Economics, Elsevier, vol. 100(1), pages 107-116.
    8. Thomas Baudin, 2012. "The Optimal Trade-Off Between Quality and Quantity with Unknown Number of Survivors," Mathematical Population Studies, Taylor & Francis Journals, vol. 19(2), pages 94-113, April.
    9. Ashlesha Datar & Arkadipta Ghosh & Neeraj Sood, 2007. "Mortality Risks, Health Endowments, and Parental Investments in Infancy: Evidence from Rural India," NBER Working Papers 13649, National Bureau of Economic Research, Inc.
    10. Landmann, Andreas & Frölich, Markus, 2013. "Can Microinsurance Help Prevent Child Labor? An Impact Evaluation from Pakistan," IZA Discussion Papers 7337, Institute of Labor Economics (IZA).
    11. Lindskog, Annika, 2011. "Does a Diversification Motive Influence Children’s School Entry in the Ethiopian Highlands?," Working Papers in Economics 494, University of Gothenburg, Department of Economics.
    12. Rahul A. Sirohi, 2014. "Child Labour, Human Capital Accumulation and Foreign Aid," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 1-14, September.

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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I00 - Health, Education, and Welfare - - General - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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