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The Shadow Wage of Child Labour: An Application to Nepal

This paper estimates the contribution of child labour to the formation of household farm income in rural enterprises. The contribution to household income from the employment of children comes either from the employment on-farm at a shadow wage or off-farm in the agricultural or other sectors. The paper uses a cost function with household labour as a quasifixed factor in order to estimate the shadow wage for each component of the household labour force. The study also provides an estimate of contribution of child labour to household income in the rural sector, both at the household and national level. A set of simulation also highlight the role that child labour plays in insuring household subsistence and how it does affects income distribution.

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Paper provided by Understanding Children's Work (UCW Programme) in its series UCW Working Paper with number 11.

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Date of creation: Sep 2005
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Handle: RePEc:ucw:worpap:11
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  1. Bhalotra, Sonia & Heady, Christopher, 2001. "Child farm labour : the wealth paradox," Social Protection Discussion Papers 24088, The World Bank.
  2. Vassilis A. Hajivassiliou & Daniel L. McFadden & Paul Ruud, 1993. "Simulation of Multivariate Normal Rectangle Probabilities and their Derivatives: Theoretical and Computational Results," Working Papers _024, Yale University.
  3. Deolalikar, Anil B & Vijverberg, Wim P M, 1987. "A Test of Heterogeneity of Family and Hired Labour in Asian Agriculture," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(3), pages 291-305, August.
  4. Carlos Arias & Vincenzo Atella & Raffaella Castagnini & Federico Perali, 2003. "Estimation of the Sharing Rule between Adults and Children and Related Equivalence Scales within a Collective Consumption Framework," CHILD Working Papers wp07_03, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  5. Lorenzo Guarcello & Fabrizia Mealli & Furio Rosati, 2010. "Household vulnerability and child labor: the effect of shocks, credit rationing, and insurance," Journal of Population Economics, Springer, vol. 23(1), pages 169-198, January.
  6. repec:cup:cbooks:9780521666633 is not listed on IDEAS
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