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Market imperfections and child labor

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  • Dumas, Christelle

Abstract

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.

Suggested Citation

  • Dumas, Christelle, 2011. "Market imperfections and child labor," Proceedings of the German Development Economics Conference, Berlin 2011 25, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec11:25
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    References listed on IDEAS

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    Cited by:

    1. Samia Badji, 2016. "The Wealth Paradox for Whom? Child Labor and the Identification of Households Excluded from the Land and the Labor Markets in Madagascar," Working Papers halshs-01414530, HAL.
    2. Bandara, Amarakoon & Dehejia, Rajeev & Lavie-Rouse, Shaheen, 2015. "The Impact of Income and Non-Income Shocks on Child Labor: Evidence from a Panel Survey of Tanzania," World Development, Elsevier, vol. 67(C), pages 218-237.
    3. Delphine Boutin, 2014. "Climate vulnerability, communities' resilience and child labour," Revue d'économie politique, Dalloz, vol. 124(4), pages 625-638.
    4. Oryoie, Ali Reza & Alwang, Jeffrey & Tideman, Nicolaus, 2017. "Child Labor and Household Land Holding: Theory and Empirical Evidence from Zimbabwe," World Development, Elsevier, vol. 100(C), pages 45-58.
    5. Julián Arteaga Vallejo, 2016. "Land, Child Labor, and Schooling: Longitudinal evidence from Colombia and Mexico," DOCUMENTOS CEDE 014977, UNIVERSIDAD DE LOS ANDES-CEDE.
    6. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.

    More about this item

    Keywords

    Child labor; Market imperfections; Land; Labor; Credit; Madagascar;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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