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Food for education versus school quality: a comparison of policy options to reduce child labour

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  • Saqib Jafarey
  • Sajal Lahiri

Abstract

In a model in which credit markets play a crucial role, we examine two policy options for reducing child labour, `food for education' and `investment in education quality,' With an imperfectly elastic supply of credit, an increase in food subsidy is more effective in reducing child labour than an `income-equivalent' increase in expenditures in education quality. The effectiveness of the latter policy improves, and the optimal share of resources devoted to this policy increases, at the expense of food subsidies, as the supply of credit becomes more elastic.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 38 (2005)
Issue (Month): 2 (May)
Pages: 394-419

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Handle: RePEc:cje:issued:v:38:y:2005:i:2:p:394-419

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References

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  1. Saha, Bibhas & Sarkar, Subrata, 1999. "Schooling, Informal Experience, and Formal Sector Earnings: A Study of Indian Workers," Review of Development Economics, Wiley Blackwell, vol. 3(2), pages 187-99, June.
  2. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
  3. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 35-52, January.
  4. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
  5. Lahiri, Sajal & Raimondos-Moller, Pascalis & Wong, Kar-yiu & Woodland, Alan D., 2002. "Optimal foreign aid and tariffs," Journal of Development Economics, Elsevier, vol. 67(1), pages 79-99, February.
  6. Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
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Cited by:
  1. Burde, Dana & Linden, Leigh L., 2012. "The Effect of Village-Based Schools: Evidence from a Randomized Controlled Trial in Afghanistan," IZA Discussion Papers 6531, Institute for the Study of Labor (IZA).
  2. Edmonds, Eric V., 2007. "Child Labor," IZA Discussion Papers 2606, Institute for the Study of Labor (IZA).

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