The luxury axiom, the wealth paradox, and child labor

Research output: Journal PublicationsJournal Article (refereed)

Abstract

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.
Original languageEnglish
Pages (from-to)25-45
Number of pages21
JournalJournal of Economic Development
Volume36
Issue number3
Publication statusPublished - 1 Sep 2011

Keywords

  • Child Labor
  • Luxury Axiom
  • Substitution Axiom
  • Wealth Paradox

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