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Child Labor, Idiosyncratic Shocks, and Social Policy

  • Alice Fabre
  • Stéphane Pallage

In this paper, we measure the welfare effects of banning child labor in an economy with strong idiosyncratic shocks to employment. We then design two different policies: an unemployment insurance program and a universal basic income system. We show that they can often lead to an endogenous elimination of child labor. We work within a dynamic, general equilibrium model calibrated to South Africa in the 1990s.

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File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2011/CIRPEE11-15.pdf
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Paper provided by CIRPEE in its series Cahiers de recherche with number 1115.

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Date of creation: 2011
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Handle: RePEc:lvl:lacicr:1115
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