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Trade Sanctions and the Incidence of Child Labour

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Projektlaufzeit: 07/200204/2006

This paper presents a general equilibrium model of a small open de- veloping country that exports a range of differentiated products. The products are produced by monopolistic competitive firms using adult and child labour as well as capital. We show that a uniform tariff levied on exports produced with the help of child labour is a failure in terms of reducing child labour. A more effective course of action would be a ?rm- specifc tariff where the tariff rate varies with the amount of child labour incorporated in a single good. Such an instrument reduces child labour, but nevertheless it is bad even for the children, since it worsens their well-being via lower income and consumption.

Zuletzt aktualisiert 2017-11-07 um 14:05