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The Child Labour-Gdp Per Capita Relationship: Is There Something Beyond It ?

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Leonardo Becchetti
Gianni Trovato

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Abstract

The paper tests the theoretical predictions of a simplified intra-household bargaining model which, under reasonable assumptions, shows that child labour is significantly related to parental income, quality of education, international aid, trade liberalization, share of export of primary products and the competitiveness of the labour market. Cross-sectional and panel negative binomial estimates in a sample of emerging countries show that selected proxies of the above mentioned variables are significantly related to child labour.The positive impact of the share of primary product export on child labour outlines the existence of a potential paradox. The paradox suggests that trade liberalisation has not always straightforward positive effects on social indicators and that its short run effects on income distribution and distribution of skills and market power across countries need to be carefully evaluated. Keywords: child labour, cross-section panel estimates, primary product exports

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Paper provided by Tor Vergata University, CEIS in its series Departmental Working Papers with number 171.

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Date of creation: May 2002
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Handle: RePEc:rtv:ceiswp:171

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  1. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
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  3. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May. [Downloadable!] (restricted)
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