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Does Child Labor Decrease When Parental Incomes Rises

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Abstract

In the presence of two-sided altruism, i.e., when parents and children care about each other's utility, increases in parental income need not always lead to increases in schooling and to decreases in child labor. This surprising result derives from the systematic way capital market constraints bind as parental income rises: child labor increases as soon as parental income rises by enough to eliminate transfers from children to parents.

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  • Carol Rogers & Kenneth A. Swinnerton, 2002. "Does Child Labor Decrease When Parental Incomes Rises," Working Papers gueconwpa~02-02-02, Georgetown University, Department of Economics.
    • Handle: RePEc:geo:guwopa:gueconwpa~02-02-02
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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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