Article ID Journal Published Year Pages File Type
965569 Journal of Macroeconomics 2007 16 Pages PDF
Abstract
In this paper we view child labor as a negative externality exerted by some poor countries on richer nations. We inquire into the feasibility of international transfers as a way of addressing this externality. We build a two-country growth model with human capital and child labor. We then calibrate our model to the United States and a poor country, solve it numerically and provide a quantitative description of the minimum transfers necessary to induce the poor to give up child labor. We then check their sustainability from the point of view of the rich.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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