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Does Child Labor Decrease When Parental Incomes Rise?

Author

Listed:
  • Carol Ann Rogers

    (Georgetown University)

  • Kenneth A. Swinnerton

    (U.S. Department of Labor Bureau of International Labor Affairs)

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.

Suggested Citation

  • Carol Ann Rogers & Kenneth A. Swinnerton, 2003. "Does Child Labor Decrease When Parental Incomes Rise?," Development and Comp Systems 0306006, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0306006
    Note: Type of Document - ; pages: 23; figures: included
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    References listed on IDEAS

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    1. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 57, pages 3607-3709, Elsevier.
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    6. Eric V. Edmonds, 2005. "Does Child Labor Decline with Improving Economic Status?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    7. Laitner, John, 1993. "Intergenerational and interhousehold economic links," Handbook of Population and Family Economics, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 5, pages 189-238, Elsevier.
    8. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography 9907003, University Library of Munich, Germany, revised 30 Jul 1999.
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    More about this item

    Keywords

    child labor; intergenerational transfers; altruism;
    All these keywords.

    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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