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Foreign capital, return to education and child labour

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  • Dwibedi, Jayanta Kumar
  • Chaudhuri, Sarbajit

Abstract

The paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy using a three-sector general equilibrium framework with child labour. We show that reduction in poverty is not a necessary condition for the problem of child labour to improve in the developing economies. Economic reforms like an inflow of foreign capital can mitigate the incidence of child labour by raising the return to education and lowering the earning opportunities of children.

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Bibliographic Info

Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 19 (2010)
Issue (Month): 2 (April)
Pages: 278-286

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Handle: RePEc:eee:reveco:v:19:y:2010:i:2:p:278-286

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Web page: http://www.elsevier.com/locate/inca/620165

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Keywords: Child labour General equilibrium Foreign capital Return to education Wage inequality;

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References

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  1. Camelia Minoiu & Sanjay G. Reddy, 2008. "Chinese Poverty: Assessing The Impact Of Alternative Assumptions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 572-596, December.
  2. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
  3. 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.
  4. Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Economic liberalization and wage inequality in the presence of labour market imperfection," International Review of Economics & Finance, Elsevier, vol. 16(4), pages 592-603.
  5. Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002. "Does Globalization Increase Child Labor?," World Development, Elsevier, vol. 30(9), pages 1579-1589, September.
  6. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
  7. Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
  8. Yabuuchi, Shigemi & Chaudhuri, Sarbajit, 2007. "International migration of labour and skilled-unskilled wage inequality in a developing economy," Economic Modelling, Elsevier, vol. 24(1), pages 128-137, January.
  9. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
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Citations

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Cited by:
  1. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2014. "Agricultural Subsidy Policies Fail to Deal with Child Labour under Agricultural Dualism: What could be the Alternative Policies?," MPRA Paper 55411, University Library of Munich, Germany.
  2. Chaudhuri, Sarbajit & Roychowdhury, Somasree, 2014. "Economic Reforms and Gender-based Wage Inequality in the Presence of Factor Market Distortions," MPRA Paper 54111, University Library of Munich, Germany.
  3. 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.
  4. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.
  5. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2010. "Child labour in the presence of agricultural dualism: possible cures," MPRA Paper 23487, University Library of Munich, Germany.
  6. Chaudhuri, Sarbajit, 2010. "Foreign Direct Investment, Child Labour and Unemployment of Unskilled Labour in a Dual Economy," MPRA Paper 20610, University Library of Munich, Germany.

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