Abstinence from child labor and profit seeking

• 成果类型: Article
• 署名作者: Davies, RB
• 署名单位: University of Oregon
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2003.11.004
• 发表日期: 2005
• 页码: 251-263
• 关键词: child labor; labeling; product differentiation

摘要

Opponents of child labor suggest that demand-driven mechanisms can eliminate such practices. If consumers prefer adult-labor products, they suggest that labeling will drive out child-labor products. I show that under Bertrand competition, even with complete information, this is unlikely. When products are differentiated only by labor type, such a scheme requires at least three firms and child-labor costs at least as large as adult-labor costs. With additional lines of differentiation, child labor is eliminated only when the adult-labor costs are smaller. Thus, while labeling may reduce child labor, it is unlikely to eliminate it. (C) 2004 Elsevier B.V. All rights reserved.