Economics at your fingertips  

Trade and Child Labor: A General Equilibrium Analysis

Subhayu Bandyopadhyay () and Sudeshna C. Bandyopadhyay

Emerging Markets Finance and Trade, 2009, vol. 45, issue 1, 5-18

Abstract: This paper augments the existing literature on trade and child labor by exploring the effects of terms-of-trade changes in the context of a three-good general equilibrium model, in which one of the goods is a nontraded good. We find that, under quasi-linear preferences, the effect of the terms of trade on child labor depends critically on the pattern of substitutability (or complementarity) in the excess demand functions between the export good and the nontraded good. We extend the analysis to the case in which factors move freely between the three goods, as in a Heckscher-Ohlin-type framework. Finally, we show that a balanced budget policy of taxing the education of skilled families to subsidize the education of unskilled families must reduce child labor without any effect on aggregate welfare.

Keywords: child labor; nontraded goods; terms of trade; trade sanctions (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Trade and child labor: a general equilibrium analysis (2007) Downloads
Working Paper: Trade and Child Labor: A General Equilibrium Analysis (2005) Downloads
Working Paper: Trade and Child Labor: A General Equilibrium Analysis (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2019-09-13
Handle: RePEc:mes:emfitr:v:45:y:2009:i:1:p:5-18