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dc.contributor.authorFotoniata, Eugeniaen_US
dc.contributor.authorMoutos, Thomasen_US
dc.date.accessioned2011-08-12en_US
dc.date.accessioned2011-09-14T13:12:23Z-
dc.date.available2011-09-14T13:12:23Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/49472-
dc.description.abstractThis paper studies the interactions between the structure of product demand, relative wages, and the allocation of economic activity across two sectors. The agrarian sector produces a homogeneous good and consists of informal firms employing adults and children. The modern sector produces a quality-differentiated product: high-quality varieties are produced by formal firms which employ only adult labour, whereas low-quality varieties are produced by informal firms which employ child labour as well. Differences in tastes and incomes across households generate demand for both high-quality varieties and the low-quality varieties. We find that stricter enforcement of child-labour regulations and increases in minimum wages can have beneficial effects as far as the incidence of child labour and the size of the formal sector are concerned. However, since these policies have undesirable welfare effects among segments of wage-earning households, they may not garner the necessary political support.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Labour Markets 3537en_US
dc.subject.jelO11en_US
dc.subject.jelO17en_US
dc.subject.jelE26en_US
dc.subject.ddc330en_US
dc.subject.keywordchild labouren_US
dc.subject.keywordinformalityen_US
dc.subject.keywordproduct qualityen_US
dc.subject.keywordwelfareen_US
dc.subject.stwKinderarbeiten_US
dc.subject.stwMehr-Sektoren-Modellen_US
dc.subject.stwProduktqualitäten_US
dc.subject.stwInformeller Sektoren_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwTheorieen_US
dc.titleProduct quality, informality, and child labouren_US
dc.typeWorking Paperen_US
dc.identifier.ppn665789971en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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