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"Credit Constraints and the Phenomenon of Child Labor"

Author

Listed:
  • Ranjan, P.

Abstract

This paper develops an overlapping generations general equilibrium model to show how the phenomenon of child labor can arise due to a combination of poverty and credit constraints. It further shows that in the presence of credit constraints, the incidence of child labor is positively related with inequality in the distribution of income, and presents some empirical evidence consistent with this result.

Suggested Citation

  • Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
    • Handle: RePEc:fth:calirv:98-99-12
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D60 - Microeconomics - - Welfare Economics - - - General

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