Policies to combat child labor: A dynamic analysis
AbstractThis paper analyzes child labor in a fully dynamic model with credit constraints. It considers the ong-run and short-run effects of an array of policies like lump-sum subsidy, enrollment subsidy, improvement in primary education and variations in loan market parameters. It is shown that some policies that reduce child labor in the long run may lead to an increase in child labor in the short run. Marginal changes in the borrowing rate or credit limit do not affect the long-run incidence of child labor if the rate of time preference is constant. Implications of variable rate of time preference are also examined.
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Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-01.
Length: 35 pages
Date of creation: Dec 2003
Date of revision:
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