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Trade Sanctions, Adult Unemployment and the Supply of Child Labour: A Theoretical Analysis

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  • Manash Ranjan Gupta

Abstract

This article considers a competitive general equilibrium model of a small, open less developed economy which exports products using child labour, the supply of which varies inversely with the rate of unemployment in the adult labour market. The effects of policies such as trade sanctions and the subsidisation or protection of adult labour are analysed. It is suggested that the former may actually aggravate the child labour problem, if the unemployment effect dominates the wage effect. On the other hand, theoretical analysis indicates that trade and fiscal policies influencing the effective producers' price of the products of adult labour might be a more effective approach to the problem.

Suggested Citation

  • Manash Ranjan Gupta, 2002. "Trade Sanctions, Adult Unemployment and the Supply of Child Labour: A Theoretical Analysis," Development Policy Review, Overseas Development Institute, vol. 20(3), pages 317-332, July.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:3:p:317-332
    DOI: 10.1111/1467-7679.00174
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    Cited by:

    1. Chaudhuri, Sarbajit & Ghosh, Arnab & Banerjee, Dibyendu, 2018. "Can public subsidy on education necessarily improve wage inequality?," International Review of Economics & Finance, Elsevier, vol. 54(C), pages 165-177.
    2. Amit, Kundu & Anwesha, Das, 2010. "Some Unexplored Economics of Roaming Child Workers," MPRA Paper 23593, University Library of Munich, Germany, revised 11 Jun 2010.
    3. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2017. "Foreign Direct Investment and Domestic Child Labor," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 383-403, May.
    4. Sushobhan Mahata & Jonaki Sengupta & Ranjanendra Narayan Nag, 2021. "Child Labour and Trade-Related Price Policies in a Developing Economy: A Trade-Theoretical Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 685-704, September.
    5. Mehdi Feizi & Saeed Malek Sadati & Mozhgan Asna-ashary, 2023. "Child Labor and Unemployment: a Tale of Two Associations in Urban and Rural Areas in Iran," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 16(3), pages 1297-1314, June.
    6. Michele Di Maio & Giorgio Fabbri, 2013. "Consumer boycott, household heterogeneity, and child labor," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1609-1630, October.
    7. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2006. "Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 58(2), pages 129-150, April.
    8. Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2014. "Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?," Research in Economics, Elsevier, vol. 68(3), pages 277-291.
    9. Kamalika Chakraborty & Bidisha Chakraborty, 2018. "Low level equilibrium trap, unemployment, efficiency of education system, child labour and human capital formation," Journal of Economics, Springer, vol. 125(1), pages 69-95, September.
    10. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2009. "Agricultural Dualism, Incidence of Child Labour and Subsidy Policies," MPRA Paper 18002, University Library of Munich, Germany.
    11. Sarbajit Chaudhuri, 2004. "Incidence of Child Labour, Free Education Policy, and Economic Liberalisation in a Developing Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(1), pages 1-25.
    12. Jayanta Kumar Dwibedi & Sugata Marjit, 2017. "Relative Affluence and Child Labor—Explaining a Paradox," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1178-1190, November.
    13. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.
    14. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
    15. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2010. "Child labour in the presence of agricultural dualism: possible cures," MPRA Paper 23487, University Library of Munich, Germany.

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