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The Determinants of Rural Child Labor: An Application to India

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  • Congdon Fors, Heather

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

There are several factors that may contribute to the decision to send a child to work, such as poverty, market imperfections and parental preferences. The aim of this paper is to determine empirically the relative importance of these diverse factors on the incidence of child labor in rural India. In order to examine several potentially influential factors separately, we outline a theoretical model of child labor in a peasant household based on the model presented in Bhalotra and Heady (2003) with modifications to allow for the child to participate in different types of labor. We then use the theoretical model to specify and estimate an empirical model of rural child labor participation. Our results indicate that parental education and household income appear to play the most important role in determining whether a child works, attends school or is idle. Market imperfections, on the other hand, only play an important role in determining whether the child participates in family labor.

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File URL: http://hdl.handle.net/2077/4588
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 256.

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Length: 44 pages
Date of creation: 19 Jun 2007
Date of revision:
Handle: RePEc:hhs:gunwpe:0256

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: child labor; school attendance; market imperfections; India;

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References

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  1. Carol Ann Rogers & Kenneth A. Swinnerton, 1999. "Inequality, Productivity, and Child Labor," Labor and Demography 9907003, EconWPA, revised 30 Jul 1999.
  2. Basu, Kaushik, 2000. "The Intriguing Relation between Adult Minimum Wage and Child Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages C50-61, March.
  3. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  4. Ranjan, Priya, 1999. "An economic analysis of child labor," Economics Letters, Elsevier, vol. 64(1), pages 99-105, July.
  5. Jean Dreze & Geeta Gandhi Kingdon, 1999. "School Participation in Rural India," Working papers 69, Centre for Development Economics, Delhi School of Economics.
  6. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  7. Carol Rogers & Kenneth A. Swinnerton, 2001. "Inequality, Productivity, and Child Labor: Theory and Evidence," Working Papers gueconwpa~01-01-10, Georgetown University, Department of Economics.
  8. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  9. Jayaraj, D. & Subramanian, S., 2005. "Out of School and (Probably) in Work: Child Labour and Capability Deprivation in India," Working Paper Series RP2005/55, World Institute for Development Economic Research (UNU-WIDER).
  10. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  11. Pham Hoang Van & Kaushik Basu, 1999. "The Economics of Child Labor: Reply," American Economic Review, American Economic Association, vol. 89(5), pages 1386-1388, December.
  12. Basu, Kaushik & Ray, Ranjan, 2002. "The collective model of the household and an unexpected implication for child labor : hypothesis and an empirical test," Policy Research Working Paper Series 2813, The World Bank.
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Cited by:
  1. Congdon Fors, Heather, 2008. "Child Labor: A Review of Recent Theory and Evidence with Policy Implications," Working Papers in Economics 324, University of Gothenburg, Department of Economics.

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