Child Labor, Idiosyncratic Shocks, and Social Policy

Alice Fabre and Stephane Pallage

Working Papers from HAL

Abstract: In this paper, we provide a dynamic model with heterogeneous agents to study child labor in an economy with idiosyncratic shocks to employment. Households facing adverse shocks may use child labor as a buffer to smooth consumption. We show that the introduction of an unemployment insurance program and/or a universal basic income system help eliminate child labor endogenously in this context. A calibration to South Africa in the 1990s is provided.

Keywords: idiosyncratic shocks; unemployment insurance; child labor; universal basic income; heterogeneous agents; child labor ban (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-dge
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00913666
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Related works:
Journal Article: Child labor, idiosyncratic shocks, and social policy (2015)
Working Paper: Child Labor, idiosyncratic shocks, and social policy (2015)
Working Paper: Child Labor, Idiosyncratic Shocks, and Social Policy (2013)
Working Paper: Child Labor, Idiosyncratic Shocks, and Social Policy (2011)
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