Impact of Trade Restriction on Child Labour Supply and the Role of Parents’ Utility Function: A Two Sector General Equilibrium Analysis

2016 ◽  
pp. 315-329 ◽  
Author(s):  
Biswajit Chatterjee ◽  
Runa Ray
Keyword(s):  
General Equilibrium ◽  
Utility Function ◽  
Labour Supply ◽  
Child Labour ◽  
Equilibrium Analysis ◽  
Trade Restriction ◽  
General Equilibrium Analysis ◽  
Role Of Parents

scholarly journals Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis

2006 ◽  
Vol 7 (4) ◽  
pp. 363-388 ◽  
Author(s):  
Stefan Boeters ◽  
Nicole Gürtzgen ◽  
Reinhold Schnabel
Keyword(s):  
General Equilibrium ◽  
Discrete Choice ◽  
Computable General Equilibrium ◽  
Labour Supply ◽  
Choice Model ◽  
Computable General Equilibrium Model ◽  
Equilibrium Analysis ◽  
Applied General Equilibrium ◽  
General Equilibrium Analysis ◽  
Employment Effects

Abstract In this paper, the effects of social assistance reform proposals are discussed for the case of Germany using a computable general equilibrium model that incorporates a discrete choice model of labour supply. This allows us to identify general equilibrium effects of the reforms on wages and unemployment. The simulation results show that general equilibrium wage reactions mitigate labour supply effects and that unemployment in fact decreases. Wage reactions are thus sufficiently strong to prevent additional labour supply from translating into higher unemployment. The simulations indicate that major cuts in welfare payments are necessary to produce substantial employment effects.

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