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 language | English |
|---|---|
| Pages (from-to) | 25-45 |
| Number of pages | 21 |
| Journal | Journal of Economic Development |
| Volume | 36 |
| Issue number | 3 |
| Publication status | Published - 1 Sept 2011 |
Keywords
- Child Labor
- Luxury Axiom
- Substitution Axiom
- Wealth Paradox
