(University of Oregon, Dept. of Economics, 2003-12) Chakraborty, Shankha; Das, Mausumi
We discuss how child labor problems may persist in developing countries when adult mortality risks are endogenous. Children provide current consumption through child labor and future consumption via an informal social security arrangement. Poorer parents, unable to invest much in their health, face greater mortality risks and are inclined to send their children to work instead of investing in their human capital. Endogenous fertility decisions exacerbate the problem as parents substitute toward quantity investment in children.
