Lucky Last? Intra-Sibling Allocation of Child Labor

Tatyana Chesnokova and Rhema Vaithianathan
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Tatyana Chesnokova: University of Auckland
Rhema Vaithianathan: University of Auckland

The B.E. Journal of Economic Analysis & Policy, 2008, vol. 8, issue 1

Abstract: This paper has two objectives. First, we construct a theoretical model which explains the empirical evidence that in developing countries, first-born children are more likely to be child laborers than later-born. Second, we explore the long-run consequences of child labor regulations within our framework. In our model, credit-constrained parents use the labor income from their first-born child to fund the schooling of later-born children. In the presence of such intra-sibling effects, child labor laws which decrease work opportunities for children may backfire, increasing child labor and reducing human capital in the long run.

Keywords: child labor; birth order; credit constraint (search for similar items in EconPapers)
JEL-codes: O12 (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:bpj:bejeap:v:8:y:2008:i:1:n:20

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