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Child Labor, idiosyncratic shocks, and social policy

Author

Listed:
  • Alice Fabre

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Stéphane Pallage

    (CIRPEE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi [Montréal] - UQAM - Université du Québec à Montréal = University of Québec in Montréal)

Abstract

In this paper, we provide a dynamic model with heterogeneous agents to study child labor in an economy with idiosyncratic shocks to employment. Households facing adverse shocks may use child labor as a means to smooth consumption. We show that the introduction of an unemployment insurance program and/or a universal basic income system helps eliminate child labor endogenously in this context. A calibration to South Africa in the 1990s is provided.

Suggested Citation

  • Alice Fabre & Stéphane Pallage, 2015. "Child Labor, idiosyncratic shocks, and social policy," Post-Print hal-01456112, HAL.
    • Handle: RePEc:hal:journl:hal-01456112
    DOI: 10.1016/j.jmacro.2015.07.001
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    Cited by:

    1. Manini Ojha, 2022. "Gender gap in schooling: Is there a role for health insurance?," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(1), pages 29-54, January.
    2. Chakraborty, Kamalika & Chakraborty, Bidisha, 2018. "Endogenous Altruism, Learning by Doing Effect and Impact of Domestic Policies on Child Labour," MPRA Paper 89229, University Library of Munich, Germany.
    3. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Learning by doing, low level equilibrium trap, and effect of domestic policies on child labour," MPRA Paper 74712, University Library of Munich, Germany.
    4. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Child labour ban versus Education subsidy in a model with learning by doing effect in unskilled work," MPRA Paper 74203, University Library of Munich, Germany.
    5. Mehdi Feizi & Saeed Malek Sadati & Mozhgan Asna-ashary, 2023. "Child Labor and Unemployment: a Tale of Two Associations in Urban and Rural Areas in Iran," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(3), pages 1297-1314, June.
    6. Kamalika Chakraborty & Bidisha Chakraborty, 2024. "Endogenous Altruism and Impact of Child Labour Ban and Education Subsidy on Child Labour," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 17(3), pages 1097-1113, June.
    7. Chakraborty, Bidisha & Chakraborty, Kamalika, 2016. "Low Level Equilibrium Trap, Unemployment, School Quality, Child Labour and Human Capital Formation," MPRA Paper 74621, University Library of Munich, Germany.
    8. Himashi Muthugala & Tharaka Magammana & Amanda Bandara & Ayodhya Perera & Ruwan Jayathilaka, 2025. "Unveiling the Economic Determinants of Child Labour in Africa: A Comprehensive Study of 37 Countries," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 18(3), pages 1329-1361, June.
    9. Raymond Elikplim Kofinti & Josephine Baako-Amponsah & Prince Danso, 2023. "Household National Health Insurance Subscription and Learning Outcomes of Poor Children in Ghana," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(1), pages 357-394, February.
    10. Wang, Cheng & Williamson, Stephen, 1996. "Unemployment insurance with moral hazard in a dynamic economy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 44(1), pages 1-41, June.
    11. Kamalika Chakraborty & Bidisha Chakraborty, 2018. "Publisher Correction: Low level equilibrium trap, unemployment, efficiency of education system, child labour and human capital formation," Journal of Economics, Springer, vol. 125(1), pages 105-105, September.

    More about this item

    Keywords

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    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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