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Title: Child Labor, Idiosyncratic Shocks, and Social Policy
Authors: Fabre, Alice
Pallage, Stéphane
Keywords: Child Labor
Idiosyncratic Shocks
Unemployment Insurance
Universal Basic Income
Heterogeneous Agents
Child Labor Ban
Issue Date: 2011-06
Series/Report no.: Cahiers du CIRPÉE;11-15
Abstract: In this paper, we measure the welfare effects of banning child labor in an economy with strong idiosyncratic shocks to employment. We then design two different policies: an unemployment insurance program and a universal basic income system. We show that they can often lead to an endogenous elimination of child labor. We work within a dynamic, general equilibrium model calibrated to South Africa in the 1990s.
URI: https://depot.erudit.org/id/003505dd
Appears in Collections:Cahiers de recherche du CIRPÉE

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