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Economic Growth: A Panacea for Child Labour?

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Author Info

  • Uma Kambhampati

    (Department of Economics, University of Reading)

  • Raji Rajan

    (Department of Economics, University of Reading)

Abstract

In this paper, we test whether economic growth will lead to a decline in child labour. Our analysis brings together household data from the National Sample Survey of India and state level macro data from various sources to estimate a bivariate probit model analysing the impact of growth and development on the probability of child employment across 15 states in India. Our results lead us to conclude that contrary to popular wisdom, growth actually increases rather than decreases child labour. Pro-poor growth however does help to reduce child labour significantly amongst both boys and girls. we also find that macroeconomic prosperity has a greater impact on girls that on boys and we conclude that this is because in India's socio-cultural environment, girls are sent outside the home to work only in extreme circumstances. In this context, any improvement is likely to impact first upon girls and only then on boys.

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Bibliographic Info

Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2004-12.

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Length: 29 pages
Date of creation: May 2004
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2004-12

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References

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  1. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
  2. Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
  3. Bhalotra, Sonia & Heady, Christopher, 2001. "Child farm labour : the wealth paradox," Social Protection Discussion Papers 24088, The World Bank.
  4. Uma Kambhampati, 2004. "Does Child Work Decrease with Parental Income?: The Luxury Axiom Revisited in India," Economics & Management Discussion Papers em-dp2004-02, Henley Business School, Reading University.
  5. Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002. "Does Globalization Increase Child Labor?," World Development, Elsevier, vol. 30(9), pages 1579-1589, September.
  6. Uma S. Kambhampati & Raji Rajan, 2004. "The 'Nowhere' Children: Patriarchy and the Role of Girls in India's Rural Economy," Economics & Management Discussion Papers em-dp2004-21, Henley Business School, Reading University.
  7. Horrell Sara & Humphries Jane, 1995. "The Exploitation of Little Children: Child Labor and the Family Economy in the Industrial Revolution," Explorations in Economic History, Elsevier, vol. 32(4), pages 485-516, October.
  8. Ray, Ranjan, 2000. "Child Labor, Child Schooling, and Their Interaction with Adult Labor: Empirical Evidence for Peru and Pakistan," World Bank Economic Review, World Bank Group, vol. 14(2), pages 347-67, May.
  9. Swaminathan, Madhura, 1998. "Economic growth and the persistence of child labor: Evidence from an Indian city," World Development, Elsevier, vol. 26(8), pages 1513-1528, August.
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Citations

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Cited by:
  1. Mita Bhattacharya, 2007. "Globalisation And Child Labour: Evidence From India," Development Research Unit Working Paper Series 09-07, Monash University, Department of Economics.
  2. Eric V. Edmonds & Norbert Schady, 2012. "Poverty Alleviation and Child Labor," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 100-124, November.
  3. Heather Congdon Fors, 2012. "Child Labour: A Review Of Recent Theory And Evidence With Policy Implications," Journal of Economic Surveys, Wiley Blackwell, vol. 26(4), pages 570-593, 09.
  4. repec:rdg:wpaper:em-dp2009-06 is not listed on IDEAS
  5. repec:rdg:wpaper:em-dp2004-21 is not listed on IDEAS
  6. Eric Edmonds, 2007. "Child Labor," Working Papers id:988, eSocialSciences.
  7. Lodhi, Abdul Salam & Tsegai, Daniel W. & Gerber, Nicolas, 2011. "Determinants of participation in child’s education and alternative activities in Pakistan," Discussion Papers 119110, University of Bonn, Center for Development Research (ZEF).
  8. Eugenia Fotoniata & Thomas Moutos, 2013. "Product Quality, Informality, and Child Labor," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 268-283, 05.
  9. Uma Kambhampati, 2010. "Is Rural Child Labour Declining in India?," Economics & Management Discussion Papers em-dp2009-06, Henley Business School, Reading University.
  10. Nigar Hashimzade & Uma Kambhampati, 2010. "Growth and Inverted U in Child Labour: A Dual Economy Approach," Economics & Management Discussion Papers em-dp2009-07, Henley Business School, Reading University.
  11. Krisztina Kis-Katos, 2012. "Gender differences in work-schooling decisions in rural North India," Review of Economics of the Household, Springer, vol. 10(4), pages 491-519, December.
  12. repec:rdg:wpaper:em-dp2009-07 is not listed on IDEAS
  13. Uma Sarada Kambhampati, 2009. "Child Schooling and Work Decisions in India: The Role of Household and Regional Gender Equity," Feminist Economics, Taylor & Francis Journals, vol. 15(4), pages 77-112.
  14. C. Simon Fan, 2011. "The Luxury Axiom, The Wealth Paradox, And Child Labor," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 25-45, September.

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