Relative Affluence and Child Labor—Explaining a Paradox

Status Seeking Behavior of the Poor: A Study on India

“…Studies conducted by Swaminathan (1998) for a city in Gujarat, India, that by Barros et al (1994) and Duryea and Arends-Kuenning (2003) for Brazil, finds an increase in the incidence of child labour with economic growth or economic prosperity. To explain these observations, Dwibedi and Marjit (2017) questions the validity of the poverty hypothesis of child labour for these circumstances and instead forwards an theory where status consciousness leads to a situation where in spite of an increase absolute income of the poor if their relative position in the society deteriorates then it may lead to an increase in child labour. The generality and robustness of our results corroborates such a theoretical justification.…”

Incentives, Status and Thereafter: A Critical Survey

“…Charles et al (2009) have shown how the backward races (like Hispanics) devote larger shares of their expenditure bundles in visible goods such as clothing, cars and jewellery as compared to the individuals belonging to higher social status communities (like the whites). Dwibedi and Marjit (2017) reinforce this fact in the context of child labour. It is observed that the child labour supply does not decrease with the economic improvement of the family, but it strongly depends on the relative position of the family in the societal ladder.…”

Indignity of Labor: Role of Occupational Prestige in Unemployment

“…The idea of occupational prestige can be related to the economics of status seeking behaviour which has produced interesting results using relative income or as a status index. One may look at, Beladi, Marjit, Oladi and Yang ( 2021), Dwibedi and Marjit(2017), Long and Shimomura (2004) etc.…”