We examine the second-best family policy under the assumption that both the number and the future earning capacities of the children born to a couple are random variables with probability distributions conditional on unobservable parental actions. Potential parents take their decisions without...

We consider a case where some of the parents have higher ability to raise children than others. First-best policy gives both types of parents the same level of utility. If parental actions are not fully observable, however, the policy maker has to take into account the incentive-compatibility...

The causes and consequences of child labour are examined theoretically and empirically within a household decision framework, with endogenous fertility and mortality. The data come from a nationally representative survey of Indian rural households. The complex interactions uncovered by the...