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Growth and Inverted U in Child Labour: A Dual Economy Approach

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  • Nigar Hashimzade

    ()
    (School of Economics, University of Reading)

  • Uma Kambhampati

    ()
    (School of Economics, University of Reading)

Abstract

While it is commonly accepted that the main cause of child labour is poverty, empirical observations suggest that economic growth is not always associated with the reduction in child labour. We show, in a dual economy framework, that the e¤ect of productivity growth upon child labour may be positive or negative. In particular, changes in the productivity gap between the modern and the traditional sectors, due to the technological progress, can generate an increase in child labour. In a dynamic version of the model we also investigate how this e¤ect depends on the quality of schooling.

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Bibliographic Info

Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2009-07.

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Length: 20 pages
Date of creation: 03 May 2010
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2009-07

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  1. Holger Strulik, 2004. "Child mortality, child labour and economic development," Economic Journal, Royal Economic Society, vol. 114(497), pages 547-568, 07.
  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. Eric Edmonds & Nina Pavcnik, 2002. "Does Globalization Increase Child Labor? Evidence from Vietnam," NBER Working Papers 8760, National Bureau of Economic Research, Inc.
  4. 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.
  5. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2007. "Foreign Capital Inflow, Fiscal Policies And Incidence Of Child Labour In A Developing Economy," Manchester School, University of Manchester, vol. 75(1), pages 17-46, 01.
  6. Talia Bar & Kaushik Basu, 2009. "Children, Education, Labor, and Land: In The Long Run and Short Run," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 487-497, 04-05.
  7. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2007. "Child Labor and Household Wealth: Theory and Empirical Evidence of an Inverted-U," IZA Discussion Papers 2736, Institute for the Study of Labor (IZA).
  8. Jonathan Temple, 2005. "Dual Economy Models: A Primer For Growth Economists," Manchester School, University of Manchester, vol. 73(4), pages 435-478, 07.
  9. Sophia Rabe-Hesketh & Anders Skrondal, 2012. "Multilevel and Longitudinal Modeling Using Stata, 3rd Edition," Stata Press books, StataCorp LP, edition 3, number mimus2, March.
  10. 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.
  11. Garance Genicot, 2005. "Malnutrition and Child Labor," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 83-102, 03.
  12. Kambhampati, Uma S. & Rajan, Raji, 2006. "Economic growth: A panacea for child labor?," World Development, Elsevier, vol. 34(3), pages 426-445, March.
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