The causes and consequences of child labour are examined theoretically and empirically within a household decision framework, with endogenous fertility and mortality. The data come from a nationally representative survey of Indian rural households. The complex interactions uncovered by the analysis suggest that mere prohibition of child labour, or the imposition of school attendance, could make things worse, and would be difficult to enforce. Beneficially reducing child labour requires changing the economic environment to which the work of the children constitutes, in the great majority of the cases, the rational response. Suitable policies include reductions in the cost of attending school, and public health improvements. The effects of these policies go far beyond direct impacts. Health policies have favourable indirect repercussions on the school attendance, demand for educational material, and labour participation of children. Educational policies have favourable indirect repercussions on the nutritional status of children. Both types of policies discourage fertility. Income re-distribution may be helpful, but land re-distribution could be counterproductive
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
115.
Find related papers by JEL classification: I12 - Health, Education, and Welfare - - Health - - - Health Production J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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Nielsen, Helena Skyt & Dubey, Amaresh, 2001.
"Child Labor: A Microeconomic Perspective,"
Working Papers
01-10, University of Aarhus, Aarhus School of Business, Department of Economics.
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Other versions:
Giorgio Bellettini & Carlotta Berti Ceroni & Gianmarco I.P. Ottaviano, 2003.
"Child Labor and Resistance to Change,"
Working Papers
2003.79, Fondazione Eni Enrico Mattei.
[Downloadable!]
Other versions:
Giorgio Bellettini & Carlotta Berti Ceroni & Gianmarco I. P. Ottaviano, 2005.
"Child Labour and Resistance to Change,"
Economica,
London School of Economics and Political Science, vol. 72(3), pages 397-411, 08.
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