Lucky Last? Intra-Sibling Allocation of Child Labor

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Tatyana Chesnokova ◽  
Rhema Vaithianathan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Theoretical Model ◽  
Child Labor ◽  
Labor Income ◽  
Labor Laws ◽  
Labor Regulations ◽  
Long Run ◽  
Born Child ◽  
Sibling Effects

Abstract This paper has two objectives. First, we construct a theoretical model which explains the empirical evidence that in developing countries, first-born children are more likely to be child laborers than later-born. Second, we explore the long-run consequences of child labor regulations within our framework. In our model, credit-constrained parents use the labor income from their first-born child to fund the schooling of later-born children. In the presence of such intra-sibling effects, child labor laws which decrease work opportunities for children may backfire, increasing child labor and reducing human capital in the long run.

The Dynamics of Technical Progress in Some Developing and Developed Countries

2016 ◽  
pp. 172-194
Author(s):  
Weshah A. Razzak ◽  
Belkacem Laabas ◽  
El Mostafa Bentour
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Population Growth ◽  
Technical Progress ◽  
Capital Intensity ◽  
Developed Countries ◽  
World Population ◽  
Long Run ◽  
Endogenous Growth Model ◽  
New Ideas

We calibrate a semi-endogenous growth model to study the transitional dynamic and the properties of balanced growth paths of technological progress. In the model, long-run growth arises from global discoveries of new ideas, which depend on population growth. The transitional dynamic consists of the growth rates of capital intensity, labor, educational attainment (human capital), and research and ideas in excess of world population growth. Most of the growth in technical progress in a large number of developed and developing countries is accounted for by transitional dynamics.

Green returns of labor income and human capital: Empirical evidence of the environmental behavior of households in developing countries

2019 ◽  
Vol 160 ◽  
pp. 105-113 ◽  
Author(s):  
Pablo Ponce ◽  
Rafael Alvarado ◽  
Katerine Ponce ◽  
Raquel Alvarado ◽  
Danny Granda ◽  
...  
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Empirical Evidence ◽  
Environmental Behavior ◽  
Labor Income

scholarly journals A Theory of Occupational Choice with Endogenous Fertility

2012 ◽  
Vol 4 (4) ◽  
pp. 1-34 ◽  
Author(s):  
Dilip Mookherjee ◽  
Silvia Prina ◽  
Debraj Ray
Keyword(s):  
Child Labor ◽  
Occupational Choice ◽  
Steady States ◽  
Comparative Statics ◽  
Equilibrium Analysis ◽  
Cross Sectional ◽  
Labor Regulations ◽  
Long Run ◽  
Redistribution Policy ◽  
Shed Light

Theories based on partial equilibrium reasoning alone cannot explain the widespread negative cross-sectional correlation between parental wages and fertility, without restrictive assumptions on preferences and childcare costs. We argue that incorporating a dynamic general equilibrium analysis of returns to human capital can help explain observed empirical patterns. Other by-products of this theory include explanations for intergenerational mobility without stochastic shocks, connections between mobility and fertility patterns, and locally determinate steady states. Comparative statics exercises on steady states shed light on the effects of education, childcare subsidies, child labor regulations, and income redistribution policy on long run living standards. (JEL H23, I31, J13, J24, J62, J82)

scholarly journals Factor accumulation and economic growth in Pakistan: incorporating human capital

2018 ◽  
Vol 45 (3) ◽  
pp. 480-491 ◽  
Author(s):  
Kashif Munir ◽  
Shahzad Arshad
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Endogenous Growth ◽  
Growth Model ◽  
Physical Capital ◽  
Content Type ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Factor Accumulation

Purpose The purpose of this paper is to examine the long-run and short-run relationship between factor accumulation (i.e. physical capital and human capital) and economic growth by calculating the stocks of human capital and real physical capital. Design/methodology/approach The study uses endogenous growth model, where GDP per worker is the dependent variable and factor accumulation (real physical capital per worker and human capital) is the explanatory variable under the autoregressive distributive lag framework from 1973 to 2014 for Pakistan. Findings The results suggest that there is a long-run relationship between factor accumulation and GDP per worker in Pakistan. Findings of the study are consistent with the endogenous growth model suggesting that accumulation of human capital increases labor productivity, employment level and per capita income, and causes economic growth. Practical implications Developing countries like Pakistan should increase share of human capital for economic development. Government should invest in the education sector because investment in human capital has a large potential of productivity growth and welfare increase in developing countries. Originality/value This study challenges the notion of human capital and real physical capital stock used by different researchers. Considering human capital as a core factor of production, a series of human capital as average year of schooling is calculated by utilizing the perpetual inventory method.

Trade, Development and Child Labor: Regulation and Law in the Case of Child Labor in the Cocoa Industry

2015 ◽  
Vol 8 (2) ◽  
Author(s):  
William Bertrand ◽  
Elke de Buhr
Keyword(s):  
Developing Countries ◽  
Social Change ◽  
Private Sector ◽  
Child Labor ◽  
Voluntary Agreements ◽  
Labor Regulation ◽  
Labor Laws ◽  
Department Of Labor ◽  
The U.S

AbstractVoluntary private sector agreements are common as a tool to regulate industries including the enforcement of labor laws in domestic and overseas markets. Agreements cover many different industries, and they differ greatly in scope, implementation and monitoring. Challenging to enforce, they have often been criticized by consumer groups and have sometimes failed. This article examines one of the oldest and most prominent examples of a voluntary industry agreement in agriculture, the Harkin-Engel Protocol targeted at addressing the worst forms of child labor in the cocoa sectors of Côte d’Ivoire and Ghana. In 2006, the authors of this paper were first tasked by the U.S. Department of Labor to oversee the implementation of the Harkin-Engel Protocol on behalf of the U.S. Congress. They have since documented the Protocol’s implementation for more than eight years. This paper discusses the authors’ experience with private sector voluntary agreements for achieving social change in developing countries at the example of the Protocol. Special issues around the role of regulation and law within this process are our focus in this article.

LONG-RUN TAX INCIDENCE IN A HUMAN-CAPITAL-BASED ENDOGENOUS GROWTH MODEL WITH LABOR-MARKET FRICTIONS

2019 ◽  
pp. 1-42
Author(s):  
Been-Lon Chen ◽  
Hung-Ju Chen ◽  
Ping Wang
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Endogenous Growth ◽  
Growth Model ◽  
Tax Incidence ◽  
Labor Income ◽  
Market Participation ◽  
Long Run ◽  
Labor Market Frictions ◽  
Endogenous Growth Model

In a second-best optimal growth setup with only factor taxes, it is in general optimal to fully replace capital by labor income taxation in the long run. We revisit this important issue by developing a human-capital-based endogenous growth model with frictional labor search, allowing each firm to create multiple vacancies and each worker to determine market participation. We find that the conventional efficient bargaining condition is necessary but not sufficient for achieving constrained social optimality. We then conduct tax incidence exercises in balanced growth by calibrating to the U.S. economy with a preexisting 20% flat tax on capital and labor income. Our quantitative results suggest that, due to a dominant channel via the interactions between vacancy creation and market participation, it is optimal to switch only partially from capital to labor taxation in a benchmark economy where human-capital formation depends on both physical and human-capital stocks. This main finding is robust even along the transition with time-varying factor tax rates. Moreover, our quantitative analysis under alternative setups suggests that while endogenous human capital and labor-market frictions are essential for obtaining a positive optimal capital tax, endogenous leisure, nonlinear human-capital accumulation and endogenous growth are not crucial.

scholarly journals Female Earnings in the Apparel Industry Post-MFA: Evidence From Pakistan

SAGE Open ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 215824402092655
Author(s):  
Jabbar Ul-Haq ◽  
Hubert Visas ◽  
Seyedrohollah Ahmadi ◽  
Ahmed Raza Cheema
Keyword(s):  
Developing Countries ◽  
Theoretical Model ◽  
Apparel Industry ◽  
Product Price ◽  
Female Workers ◽  
Long Run ◽  
Textile And Apparel ◽  
The World ◽  
Short Run ◽  
Male Workers

One of the major worries vis-à-vis the phasing out of the multifiber arrangements (MFA)/agreement on textile and clothing (ATC) in 2005 was that the textile and apparel (T&A) production would shift from the developed to the developing countries and have significant impacts on particularly the female workers, as apparel is a female intensive sector in the world. We explore the effect of MFA/ATC on female laborer by examining the predictions of the theoretical model of Robertson and Trigueros-Argüello in the case of Pakistan. It predicts, based on the assumption that the T&A sector is female intensive, such that an adverse (beneficial) shock to product price will be transformed into a comparative decline (rise) in the T&A wages relative to other sectors in the short run (SR) and a relative drop in wages of female workers compared with wages of male workers across all sectors in the long-run (LR). Our empirical findings of the post-MFA/ATC variations support the predictions of the theoretical model.

scholarly journals Nexus between Child labor, Sector-specific Growth and International Trade in Pakistan

2021 ◽  
Vol 6 (1) ◽  
pp. 313-326
Author(s):  
Sana Suleman ◽  
Sana Suleman ◽  
H. Nouman Siddique
Keyword(s):  
Child Labor ◽  
Rural Population ◽  
Urban Population ◽  
Specific Growth ◽  
Trade Openness ◽  
Labor Laws ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Urban Population Growth

This study focused on analyzing the impacts of different sectors’ growth and globalization on child labor in Pakistan. The order of integration variables was found mix as some were I(0) and some were I(1). That’s why, the long run and short run dynamics were evaluated through ARDL mechanism using data from 1980-2014. The long run and short run inferences revealed that growth reduced child labor significantly in all sectors except services. The urban population growth significantly lessened the child labor as compared to rural population. The FDI significantly decreased the child labor growth while trade openness did opposite. Results suggest that trade policy and labor laws of ILO should be implemented.

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