It is often argued that child labour is caused by poverty. However, much child labour takes place in rural areas characterized by substantial labour market imperfections. A model of rural household labour supply is developed that provides testable implications for two versions of the poverty hypothesis: that child labour is due to a binding subsistence constraint and that child leisure is a luxury good. We find that in rural Burkina Faso children do not provide labour to meet households' subsistence needs and that child leisure is a normal good. The evidence suggests that labour market imperfections are a main reason for using child labour. Copyright 2007 , Oxford University Press.
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Volume (Year): 59 (2007) Issue (Month): 2 (April) Pages: 301-329 Download reference. The following formats are available: HTML
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