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Child Labour, Human Capital Accumulation and Foreign Aid

Author

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  • Rahul A. Sirohi

    (University of Illinois at Urbana Champaign, USA)

Abstract

In a three period overlapping generations model with child labour, exogenous increases in child health endowments increase child labour and fertility. On the other hand, cash transfer and compulsory education funded through foreign aid have a negative effect on child labour. Foreign aid has a positive effects on fertility if cash transfers for child support are unconditional, and no effect if transfers are conditional on time spent in school. This result supports conditional cash transfer programs like the Bolsa Familia.

Suggested Citation

  • Rahul A. Sirohi, 2014. "Child Labour, Human Capital Accumulation and Foreign Aid," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(3), pages 1-14, September.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:3:p:1-14
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    References listed on IDEAS

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    Cited by:

    1. Tang, Can & Zhao, Liqiu & Zhao, Zhong, 2018. "Child labor in China," China Economic Review, Elsevier, vol. 51(C), pages 149-166.

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    More about this item

    Keywords

    Child Labour; Human Capital; Poverty Traps; Foreign Aid;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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