Working versus schooling: the impact of social expenditure
AbstractWe develop a theoretical model where child labour results from a household?s trade-off between sending a child to school or to work. Education is considered as a risky investment, since the survival of the child is not certain. We explore the effects of public expenditure on education and health on child labour, specifying a transmission mechanism for each kind of spending. On the one hand, we establish that health expenditure reduces child labour all the more as child mortality rate is high. On the other hand, a moderate aversion to risk is a necessary condition for education expenditure to reduce child labour. Our theoretical results are empirically validated on panel data from 66 developing countries between 1985 and 2000. JEL Classification: J20, K31, D60.
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Bibliographic InfoArticle provided by De Boeck Université in its journal Recherches économiques de Louvain.
Volume (Year): 74 (2008)
Issue (Month): 1 ()
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Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm
child labour; education spending; health spending;
Other versions of this item:
- Christopher GRIGORIOU & Grégoire Rota Graziosi, 2008. "Working vesus schooling the impact of social expenditure," Discussion Papers (REL - Recherches Economiques de Louvain) 2008012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
- D60 - Microeconomics - - Welfare Economics - - - General
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