The luxury axiom, the wealth paradox, and child labor

Document Type

Journal article

Source Publication

Journal of Economic Development

Publication Date

9-1-2011

Volume

36

Issue

3

First Page

25

Last Page

45

Publisher

Chung-Ang University * Economic Research Institute

Keywords

Child Labor, Luxury Axiom, Wealth Paradox, Substitution Axiom

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.

Print ISSN

02548372

Publisher Statement

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Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Fan, C. S. (2011). The luxury axiom, the wealth paradox, and child labor. Journal of Economic Development, 36(3), 25-45.

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