A WELFARE ANALYSIS OF CHILD LABOR RESTRICTION: INTERGENERATIONAL PERSPECTIVES

다국어 초록 (Multilingual Abstract)

I analyze the welfare implications of child labor restriction using an overlapping generations model with two-sided altruism. Efficient allocation of child time generally results in a positive level of child labor. Without a policy intervention, the steady state consists of an inefficiently high level of child labor because each generation discounts the value of the other generations’ schooling more than the social optimal. A moderate restriction of child labor always improves future generations’ welfare, but may lower the current adult generation’s welfare. In general, the current adult generation always prefers less stringent restriction than the future generations, and an intergenerational conflict arises in terms of a policy intervention.

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