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Introducing Uncertainty into Baland and Robinson's Model of Child Labour

William Pouliot

No 03-11, Carleton Economic Papers from Carleton University, Department of Economics

Abstract: Bland and Robinson (2000) [Baland, J.-M., Robinson, J.A., 2000. Is child labour inefficient? Journal of Political Economy 108 (4), 663–681] developed a model of child labour in which child labour can be inefficiently high when parents are credit constrained. We show here that, when return to human capital is uncertain and insurance are incomplete, the level of child labour can be inefficiently high even when parents are not credit constrained and bequests are interior.

Keywords: Child labour; Uncertainty; Imperfect markets (search for similar items in EconPapers)
JEL-codes: D61 D80 D91 J13 J24 (search for similar items in EconPapers)
Date: 2003-10-15, Revised 2006-02
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Published: Revised version in Journal of Development Economics, Vol. 79, No. 1 (February 2006), pp. 264–272

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