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Child labor, education aid, and economic growth

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  • Kitaura, Koji

Abstract

This paper studies the effects of education aid fungibility on growth and welfare in developing countries. We consider a three-period-lived overlapping generations economy in which children are potential workers and then individuals face the trade-off between education and child labor. We show that there exists the optimal tax rate when the government gets aid money to be spent on cash transfer and public education in the incidence of child labor. We further demonstrate that there is a case in which an increase in the allocation of public education reduces the tax burden on the economy.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Macroeconomics.

Volume (Year): 31 (2009)
Issue (Month): 4 (December)
Pages: 614-620

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Handle: RePEc:eee:jmacro:v:31:y:2009:i:4:p:614-620

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Web page: http://www.elsevier.com/locate/inca/622617

Related research

Keywords: Fungibility Child labor Foreign aid Education Cash transfer Growth;

References

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Citations

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Cited by:
  1. Marta-Christina SUCIU & Remus Marian AVRAM & Emanuela Maria AVRAM & Raluca EFTIMIE, 2011. "The Potential Of The Investment In Education In Creating Socio-Economic Development In The New Economy And The Knowledge-Based Society," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 7, pages 255-264, May.
  2. Kitaura, Koji & Ogawa, Hikaru & Yakita, Sayaka, 2011. "Multiple equilibria arising from donor’s aid policy in economic development," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 819-827.

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