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Child Labour and Resistance to Change Author info | Abstract | Publisher info | Download info | Related research | Statistics Giorgio Bellettini
Carlotta Berti Ceroni
Gianmarco I. P. Ottaviano
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We study the interaction between technological innovation, investment in human capital and child labour. In a two-stage game, first firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labour depends on parameters related to technology, parents' altruism and the diffusion of firms' property. Child labour is due either to firms' reluctance to innovate or to households' unwillingness to educate, or both. In some cases, compulsory schooling laws or a ban on child labour are welfare-reducing, whereas a subsidy for innovation is the right tool to eliminate child labour and increase welfare. Copyright (c) The London School of Economics and Political Science 2005.
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Article provided by London School of Economics and Political Science in its journal Economica .
Volume (Year): 72 (2005)
Issue (Month): 3 (08)
Pages: 397-411
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Handle: RePEc:bla:econom:v:72:y:2005:i:3:p:397-411Contact details of provider: Postal: Houghton Street, London WC2A 2AE Phone: +44 (020) 7405 7686 Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427 More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Dessy, Sylvain E. & Pallage, Stephane, 2001.
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