Lucky Last? Intra-Sibling Allocation of Child Labor

Tatyana Chesnokova () and Rhema Vaithianathan

The B.E. Journal of Economic Analysis & Policy, 2008, vol. 8, issue 1, 1-30

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.

Date: 2008
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DOI: 10.2202/1935-1682.1908

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