Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/51846 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 5663
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
As credit and insurance markets are imperfect, and given that intra-family transfers, and the way a child uses her time outside school hours, are private information, the second-best policy makes school enrollment compulsory, forces overt child labour below its efficient level (if positive), and uses a combination of need and merit based grants, financed by earmarked taxes, to relax credit constraints, redistribute and insure. Existing conditional cash transfer schemes can be made to approximate the second-best policy by incorporating these principles in some measure.
Subjects: 
child labour
education
uncertainty
moral hazard
optimal taxation
JEL: 
D82
H21
H31
I28
J24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
184.17 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.