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Identifier to cite or link to this item: https://hdl.handle.net/10086/18493

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Title	How to Deal with Covert Child Labour, and Give Children an Effective Education, in a Poor Developing Country : An Optimal Taxation Problem with Moral Hazard
Creator	Creator Name Cigno, Alessandro Cigno, Alessandro Affiliation Affiliation Name University of Florence
Editor	Contributor Name 世代間問題研究プロジェクト（世代間問題の経済分析） = Economic Analysis of Intergenerational Issues, Project on Intergenerational Equity Affiliation Affiliation Name Hitotsubashi University
Editor	Contributor Name 一橋大学経済研究所世代間問題研究機構 = Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University
Key Word	child labour
	education
	uncertainty
	moral hazard
JEL	D82
	H21
	H31
	I28
	J24
Abstract	As the return to education (and possibly also parental income) is uncertain, and given that the work a child does covertly for his own parents, and transfers between parents and children, are private information, the government should make school enrollment compulsory, set a legal limit (decreasing in parental income) on overt child labour, and redistribute across families using a flat-rate education grant, and a tax on parental income. That done, it should use a scholarship increasing in school results, and a tax on the skill premium, to raise the expected return to educational investment, and make it less uncertain.
Publisher	Institute of Economic Research, Hitotsubashi University
Issued Date	2010-04
Language	English(eng)
Resource Type	technical report
Version Type	VoR
Is Part OfRelation -	Related Title PIE/CIS Discussion Paper ; No. 474
Relation	Related Identifier URI http://cis.ier.hit-u.ac.jp/English/
Relation	Related Identifier URI http://www.ier.hit-u.ac.jp/pie/stage2/Japanese/
Number of Pages	16
Sponsorship	科学研究費補助金（特別推進研究） = Grant-in-Aid for Specially Promoted Research
Appears in Collections	PIE/CIS Discussion paper
URL	https://hdl.handle.net/10086/18493