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Child Labor and Aggregate Fluctuations

Stephane Pallage and Alice Fabre
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Alice Fabre: Université de la Mediterranee France

No 1037, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: In this paper, we build a dynamic general equilibrium model with heterogeneous agents to measure the welfare effect of banning child labor in an economy with aggregate fluctuations and idiosyncratic shocks to employment. We then design an unemployment insurance system that generates the endogenous elimination of child labor.

Date: 2010
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