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The Interaction of Child-labour and Schooling in Developing Countries: A Theoretical Perspective

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  • Anu Rammohan

    (Department of Economics, University of Sydney)

Abstract

This paper analyses the interaction between child labour and schooling in developing countries. A theoretical framework is developed, where fertility and schooling decisions are made in an environment where children contribute through child labour when young and provide old-age security as adults. The model demonstrates that the child wage rate, which is also the opportunity cost of schooling, is a crucial determinant of total fertility. An increase in the child wage rate leads to lower schooling investments and higher fertility levels. However, changes in schooling costs have no impact on fertility decisions. They only affect the allocation of children¡¯s time between schooling and child labour.

Suggested Citation

  • Anu Rammohan, 2000. "The Interaction of Child-labour and Schooling in Developing Countries: A Theoretical Perspective," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(2), pages 85-99, December.
    • Handle: RePEc:jed:journl:v:25:y:2000:i:2:p:85-99
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    References listed on IDEAS

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    Cited by:

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    3. Papa Seck, 2005. "Do Parents Favor their Biological Offspring over Adopted Orphans? Theory and Evidence from Tanzania," Economics Working Paper Archive at Hunter College 409, Hunter College Department of Economics.
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    6. Lantana M. Usman, 2010. "Street hawking and socio‐economic dynamics of nomadic girls of northern Nigeria," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(9), pages 717-734, August.

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