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A Theory of Child Protection against Kidnapping

  • Caroline Orset

This paper studies the microeconomics of child vulnerability to kidnapping in an environment where child protection is produced through a private effort, a public investment and a foreign aid. We first show that in absence of public investment and foreign aid, private investment in child protection may exhibit a vicious cycle of rising child's vulnerability, which justify public production of child safety resources on efficiency grounds. However, the introduction of a redistributive taxation to finance public investment may lead to a reduction of the global child protection, and then to an increase of the number of kidnapped children. In addition, richer families prefer private production of child safety resources to public production, while poorer families are in favour of public production. In this context, a foreign help is useful to deal with this disagreement. Nevertheless, foreign aid may raise an aid dependency. We then conclude that State and international organisms have a duty to assist households for building a protective environment. However, State's policy and foreign aid have to be chosen with care in order to avoid crowding out the parents' effort, and create an aid dependency.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 0816.

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Date of creation: 2008
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Handle: RePEc:lvl:lacicr:0816
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  1. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  2. 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.
  3. Rogers Carol Ann & Swinnerton Kenneth A, 2005. "A Theory of Exploitative Child Labor," Labor and Demography 0510006, EconWPA.
  4. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  5. Sylvain Dessy & Stephane Pallage, 2000. "Child Labor and Coordination Failures," Cahiers de recherche CREFE / CREFE Working Papers 109, CREFE, Université du Québec à Montréal.
  6. Sylvain E. Dessy & Désiré Vencatachellum, 2003. "Explaining cross-country differences in policy response to child labour," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 1-20, February.
  7. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  8. Heller, Peter S, 1975. "A Model of Public Fiscal Behavior in Developing Countries: Aid, Investment, and Taxation," American Economic Review, American Economic Association, vol. 65(3), pages 429-45, June.
  9. Sylvain Dessy & Stéphane Pallage, 2003. "The Economics of Child Trafficking," Cahiers de recherche 0323, CIRPEE.
  10. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  11. Kent P. Kimbrough, 1986. "Foreign Aid and Optimal Fiscal Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 19(1), pages 35-61, February.
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