Market imperfections and child labor
There is some indirect evidence that child labor is affected by market imperfections. This paper provides a theoretical model to discuss the effect of improvements on the labor market, when households cannot rely on neither the land nor the credit markets. The predictions differ by land ownership: landless or large landowners should decrease child labor when labor market imperfections decrease. Households who had chosen not to supply any labor on the wage market (households with intermediate-upper land levels) remain unaffected and households who combine farm work with wage work (households with intermediate-lower land levels) may either increase or decrease their child labor use. We use Malagasy data to estimate the relation between child labor and various measures of markets imperfections. We match those data with a municipality census so as to control for a large set of village characteristics. We find that on average market imperfections (labor but also land and credit) do indeed increase child labor and obtain heterogenous effects by land ownership that are consistent with the theoretical model. The results point to the fact that an improvement of markets competitiveness should decrease child labor (and even the more so for labor markets), which provides an alternative policy to fight against child labor.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ael.ethz.ch/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sonia Bhalotra & Christopher Heady, 2003.
"Child Farm Labor: The Wealth Paradox,"
Bristol Economics Discussion Papers
03/553, Department of Economics, University of Bristol, UK.
- Cogneau, Denis & Jedwab, Rémi, 2008.
"Family Income and Child Outcomes: The 1990 Cocoa Price Shock in Cote d’Ivoire,"
Economics Papers from University Paris Dauphine
123456789/4319, Paris Dauphine University.
- Denis Cogneau & Rémi Jedwab, 2008. "Family income and child outcomes: the 1990 cocoa price shock in Cote d’Ivoire," Working Papers DT/2008/05, DIAL (Développement, Institutions et Mondialisation).
- Denis Cogneau & Remi Jedwab, 2008. "Family Income and Child Outcomes:The 1990 Cocoa Price Shock in Cote d'Ivoire," CEDI Discussion Paper Series 08-13, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Jafarey, Saqib & Lahiri, Sajal, 2002.
"Will trade sanctions reduce child labour?: The role of credit markets,"
Journal of Development Economics,
Elsevier, vol. 68(1), pages 137-156, June.
- Saqib Jafarey & Sajal Lahiri, 1999. "Will trade sanctions reduce child labour? The role of credit markets," Economics Discussion Papers 500, University of Essex, Department of Economics.
- Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2009.
"Why Should We Care About Child Labor?: The Education, Labor Market, and Health Consequences of Child Labor,"
Journal of Human Resources,
University of Wisconsin Press, vol. 44(4).
- Beegle, Kathleen & Dehejia, Rajeev & Gatti, Roberta, 2005. "Why should we care about child labor? The education, labor market, and health consequences of child labor," Policy Research Working Paper Series 3479, The World Bank.
- Kathleen Beegle & Rajeev Dehejia & Roberta Gatti, 2004. "Why Should We Care About Child Labor? The Education, Labor Market, and Health Consequences of Child Labor," NBER Working Papers 10980, National Bureau of Economic Research, Inc.
- Kaushik Basu & Sanghamitra Das & Bhaskar Dutta, 2007.
"Child labor and household wealth: Theory and empirical evidence of an inverted-U,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
07-01, Indian Statistical Institute, New Delhi, India.
- Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2010. "Child labor and household wealth: Theory and empirical evidence of an inverted-U," Journal of Development Economics, Elsevier, vol. 91(1), pages 8-14, January.
- Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2007. "Child Labor and Household Wealth: Theory and Empirical Evidence of an Inverted-U," IZA Discussion Papers 2736, Institute for the Study of Labor (IZA).
- Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2007. "Child Labor and Household Wealth: Theory and Empirical Evidence of an Inverted-U," Working Papers 07-02, Cornell University, Center for Analytic Economics.
- Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2009. "Child Labor and Household Wealth : Theory and Empirical Evidence of an Inverted-U," The Warwick Economics Research Paper Series (TWERPS) 888, University of Warwick, Department of Economics.
- Edmonds, Eric V., 2006. "Child labor and schooling responses to anticipated income in South Africa," Journal of Development Economics, Elsevier, vol. 81(2), pages 386-414, December.
- Christelle Dumas, 2007. "Why do parents make their children work? A test of the poverty hypothesis in rural areas of Burkina Faso," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 301-329, April.
- Mueller, Eva, 1984. "The value and allocation of time in rural Botswana," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 329-360.
- Ranjan, Priya, 2001.
"Credit constraints and the phenomenon of child labor,"
Journal of Development Economics,
Elsevier, vol. 64(1), pages 81-102, February.
- Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
- David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
- Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
- Duryea, Suzanne & Arends-Kuenning, Mary, 2003. "School Attendance, Child Labor and Local Labor Market Fluctuations in Urban Brazil," World Development, Elsevier, vol. 31(7), pages 1165-1178, July.
- Beegle, Kathleen & Dehejia, Rajeev H. & Gatti, Roberta, 2006. "Child labor and agricultural shocks," Journal of Development Economics, Elsevier, vol. 81(1), pages 80-96, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:gdec11:25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.