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Economic yoyos, parasites and child labor

Economic yoyos, parasites and child labor Purpose – In the light of a recent systemic model, the yoyo model, this paper aims to look at how to show Bergstrom's Rotten Kid theorem as a simple corollary of earlier results along this line of work, explaining why transferable utility implies Becker's Rotten Kid theorem. It also aims to look at the relevant problem with child labor. Design/methodology/approach – The systemic yoyo model published earlier is the road‐map and foundation for the discussion. Since “as long as the benevolent head continues to contribute his income to all, other members are also motivated to maximize the family income,” as claimed by Becker's Rotten Kid theorem, the issue of child labor naturally comes into play. To this end, an example is constructed to show that the works of Baland and Robinson and Bommier and Dubois need to be fine‐tuned. Findings – The paper provides a short and clean proof for Bergstrom's Rotten Kid theorem and, by linking to Buchanan's Samaritan's dilemma, the clouds surrounding the difficult situation can be penetrated with more clarity. More specifically, child labor and children's human capital accumulation should not be mutually exclusive, as Baland and Robinson and Bommier and Dubois had assumed. Originality/value – The paper shows rigorously how Baland and Robinson and Bommier and Dubois need to be fine‐tuned in order to capture more of the published empirical findings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Kybernetes Emerald Publishing

Economic yoyos, parasites and child labor

Kybernetes , Volume 37 (6): 11 – Jun 17, 2008

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0368-492X
DOI
10.1108/03684920810876963
Publisher site
See Article on Publisher Site

Abstract

Purpose – In the light of a recent systemic model, the yoyo model, this paper aims to look at how to show Bergstrom's Rotten Kid theorem as a simple corollary of earlier results along this line of work, explaining why transferable utility implies Becker's Rotten Kid theorem. It also aims to look at the relevant problem with child labor. Design/methodology/approach – The systemic yoyo model published earlier is the road‐map and foundation for the discussion. Since “as long as the benevolent head continues to contribute his income to all, other members are also motivated to maximize the family income,” as claimed by Becker's Rotten Kid theorem, the issue of child labor naturally comes into play. To this end, an example is constructed to show that the works of Baland and Robinson and Bommier and Dubois need to be fine‐tuned. Findings – The paper provides a short and clean proof for Bergstrom's Rotten Kid theorem and, by linking to Buchanan's Samaritan's dilemma, the clouds surrounding the difficult situation can be penetrated with more clarity. More specifically, child labor and children's human capital accumulation should not be mutually exclusive, as Baland and Robinson and Bommier and Dubois had assumed. Originality/value – The paper shows rigorously how Baland and Robinson and Bommier and Dubois need to be fine‐tuned in order to capture more of the published empirical findings.

Journal

KybernetesEmerald Publishing

Published: Jun 17, 2008

Keywords: Cybernetics; Human capital

References