P, Das Satya; Rajat, Deb - In: The B.E. Journal of Economic Analysis & Policy 5 (2006) 1, pp. 1-30
This paper analyzes the problem of child labor in an infinite-horizon dynamic model with a variable rate of time preference and credit constraints. The variability in the rate of time preference leads to the possibility of multiple steady states and a poverty trap. The paper considers the...