Basu and Van (1998) present a fundamental framework of child labor with two important axioms: the luxury axiom and the substitution axiom. A number of empirical studies, however, reveal a ¡°wealth paradox¡±. The current paper has two aims. First, it develops a model that provides an explanation for ¡°the wealth paradox¡± in light of the luxury axiom and the substitution axiom. Second, it helps understand the relationship between the luxury axiom and the substitution axiom.
|Number of pages||21|
|Journal||Journal of Economic Development|
|Publication status||Published - 1 Sep 2011|
- Child Labor
- Luxury Axiom
- Substitution Axiom
- Wealth Paradox