We extend the "general model" in Basu and Van (1998) to allow for different types of households, and the model in Swinnerton and Rogers (1999) to allow for a more general utility function. Our new finding is that while in higher-productivity countries with child labor, a more equal income...

When parents and children care about each other's utility, increases in parental income need not always lead to decreases in child labor. Adults raised in poor families make altruistic transfers to their elderly parents, which the parents take as repayment for income lost when their children...