This paper characterizes the pattern of intergenerational transfers that emerges in an altruistic model of the family when children's effort is explicitly made endogenous and parents have imperfect information on the stochastic income realizations of their children. It is shown that, if parents...

Although a growing theoretical literature points to credit constraints asan important source of inefficiently high child labor, little work has been done to assess its empirical relevance. Using panel data from Tanzania, the authors find that households respond to transitory income shocks by...

We develop a simple bargaining framework of corruption where firms pay bribes to avoid regulation. Consistent with this setup, we find that time spent bargaining with bureaucrats and amount of bribe payments are positively correlated, but that this association is weaker (and, thus, corruption...

Though there is a large literature on the determinants of child labour and many initiatives aimed at combating this phenomenon, there is limited evidence on the consequences of child labour for socioeconomic outcomes such as education, occupational choice, wages, and health. Using panel data...

By explicitly accounting for the interaction between importers and corrupt customs officials, the author argues that setting trade tariff rates at a uniform level, limits public official's ability to extract bribes from importers. If the government's main objective is to raise revenues at the...

This paper examines the relationship between household income shocks and child labour. In particular, we investigate the extent to which transitory income shocks lead to increases in child labour and whether household access to credit mitigates the effects of these shocks. Using data from a...

This paper analyses whether the presence of barriers to international trade and capital flows is associated with higher corruption. The evidence suggests that the main impact of trade barriers on corruption comes through the incentive to collusive behaviors between individuals and customs...

While some recent evidence suggests that more decentralization is associated with reduced corruption, no empirical work has examined whether different types of decentralization have differential effects on corruption. The theoretical literature has emphasized that expenditure decentralization...

In this article, we examine the link between child labor and financial development using cross-country data. We show that child labor and financial development display a significant negative relationship, which is particularly strong in the sample of low-income countries and is robust for a wide...