THE LUXURY AXIOM, THE WEALTH PARADOX, AND CHILD LABOR

C. Simon Fan ()
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C. Simon Fan: Department of Economics, Lingnan University

Journal of Economic Development, 2011, vol. 36, issue 3, 25-45

Abstract: Basu and Van (1998) present a fundamental framework of child labor with two important axioms: the luxury axiom and the substitution axiom. A number of empirical studies, however, reveal a ¡°wealth paradox¡±. The current paper has two aims. First, it develops a model that provides an explanation for ¡°the wealth paradox¡± in light of the luxury axiom and the substitution axiom. Second, it helps understand the relationship between the luxury axiom and the substitution axiom.

Keywords: Child Labor; Luxury Axiom; Wealth Paradox; Substitution Axiom (search for similar items in EconPapers)
JEL-codes: D10 J22 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:36:y:2011:i:3:p:25-45

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