The paper was motivated to test whether the high child labor prevalence observed in Ethiopia is explained by the poverty (luxury) hypothesis or wealth paradox theories. The data for this study is the Young Lives project, consisting of 1803 children units (a total of 7212 children in four...

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...

This paper investigates the effect of a unique child labor ban regulation on employment and school enrollment. The ban implemented in Mexico in 2015, increased the minimum working age from 14 to 15, introduced restrictions to employ underage individuals, and imposed penalties for the violation...