Bellettini, Giorgio ;
Berti Ceroni, Carlotta
(2003)
Child Labor and Resistance to Change.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 17.
DOI
10.6092/unibo/amsacta/4820.
In: Quaderni - Working Paper DSE
(474).
ISSN 2282-6483.
Full text available as:
Abstract
We study the interactions between technological innovation, investment in human capital and child labor. In our setting new technologies require new skills and new skills can be developed only through schooling. In a two-stage game, first firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labor depends on parameters related to technology, parents’ altruism and the diffusion of firm property. When child labor exists, it is due to either firms reluctance to innovate or households’ unwillingness to educate or both. The optimal
policy to eliminate child labor depends crucially on its underlying cause. We show
that, in some cases, compulsory schooling laws or a ban on child labor are welfare
reducing, while a subsidy to innovation is the right tool to eliminate child labor and
increase welfare.
Abstract
We study the interactions between technological innovation, investment in human capital and child labor. In our setting new technologies require new skills and new skills can be developed only through schooling. In a two-stage game, first firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labor depends on parameters related to technology, parents’ altruism and the diffusion of firm property. When child labor exists, it is due to either firms reluctance to innovate or households’ unwillingness to educate or both. The optimal
policy to eliminate child labor depends crucially on its underlying cause. We show
that, in some cases, compulsory schooling laws or a ban on child labor are welfare
reducing, while a subsidy to innovation is the right tool to eliminate child labor and
increase welfare.
Document type
Monograph
(Working Paper)
Creators
Keywords
child labor, innovation
Subjects
ISSN
2282-6483
DOI
Deposit date
10 Mar 2016 10:36
Last modified
10 Mar 2016 10:36
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
Keywords
child labor, innovation
Subjects
ISSN
2282-6483
DOI
Deposit date
10 Mar 2016 10:36
Last modified
10 Mar 2016 10:36
URI
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