Child labor, idiosyncratic shocks, and social policy

Alice Fabre and Stephane Pallage

Journal of Macroeconomics, 2015, vol. 45, issue C, 394-411

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 means to smooth consumption. We show that the introduction of an unemployment insurance program and/or a universal basic income system helps eliminate child labor endogenously in this context. A calibration to South Africa in the 1990s is provided.

Keywords: Child labor; Idiosyncratic shocks; Unemployment insurance; Universal basic income; Heterogeneous agents; Child labor ban (search for similar items in EconPapers)
JEL-codes: D58 D7 E24 J65 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
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 (2013)
Working Paper: Child Labor, Idiosyncratic Shocks, and Social Policy (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:45:y:2015:i:c:p:394-411

DOI: 10.1016/j.jmacro.2015.07.001

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