Trade and child labor: a general equilibrium analysis
This paper augments the existing literature on trade and child labor by exploring the effects of terms of trade changes in the context of a three good general equilibrium model, where one of the goods is a non-traded good. We find that under quasi-linear preferences the effect of the terms of trade on child labor depends critically on the pattern of substitutability (or complimentarity) in the excess demand functions between the export good and the non-traded good. We extend the analysis to the case where factors move freely between the three goods as in a Heckscher-Ohlin type framework. Finally, we show that a balanced budget policy of taxing the education of skilled families and subsidizing the education of unskilled families must reduce child labor without any impact on aggregate welfare.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: P.O. Box 442, St. Louis, MO 63166|
Web page: http://www.stlouisfed.org/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Eric Edmonds & Nina Pavcnik, 2004.
"International Trade and Child Labor: Cross-Country Evidence,"
NBER Working Papers
10317, National Bureau of Economic Research, Inc.
- Edmonds, Eric V. & Pavcnik, Nina, 2006. "International trade and child labor: Cross-country evidence," Journal of International Economics, Elsevier, vol. 68(1), pages 115-140, January.
- Edmonds, Eric V & Pavcnik, Nina, 2004. "International Trade and Child Labour: Cross-Country Evidence," CEPR Discussion Papers 4309, C.E.P.R. Discussion Papers.
- Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002.
"Does Globalisation Increase Child Labour?,"
IZA Discussion Papers
470, Institute for the Study of Labor (IZA).
- 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.
- Jafarey, Saqib & Lahiri, Sajal, 1999. "Will trade sanctions reduce child labour? The role of credit markets," Economics Discussion Papers 10004, University of Essex, Department of Economics.
- Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
- 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.
- 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.
- Robert C. Shelburne, 2001. "An Explanation of the International Variation in the Prevalence of Child Labour," The World Economy, Wiley Blackwell, vol. 24(3), pages 359-378, 03.
- repec:esx:essedp:500 is not listed on IDEAS
- Arnab K. Basu & Nancy H. Chau, 2004. "Exploitation of Child Labor and the Dynamics of Debt Bondage," Journal of Economic Growth, Springer, vol. 9(2), pages 209-238, 06.
- Arnab K. Basu & Nancy H. Chau & Ulrike Grote, 2006. "Guaranteed Manufactured without Child Labor: The Economics of Consumer Boycotts, Social Labeling and Trade Sanctions," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 466-491, 08.
When requesting a correction, please mention this item's handle: RePEc:fip:fedlwp:2007-024. 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: (Anna Xiao)
If references are entirely missing, you can add them using this form.