Child Labor, Idiosyncratic Shocks, and Social Policy
Alice Fabre and
Stephane Pallage
No 1358, AMSE Working Papers from Aix-Marseille School of Economics, France
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 buffer to smooth consumption. We show that the introduction of an unemployment insurance program and/or a universal basic income system help 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)
Pages: 32 pages
Date: 2013-11-05, Revised 2013-11-05
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Related works:
Journal Article: Child labor, idiosyncratic shocks, and social policy (2015) 
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 (2011) 
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1358
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