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Free Education Policy And Trade Liberalization: Consequences On Child And Adult Labour Markets In A Small Open Economy

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Author Info
Sarbajit Chaudhuri (Dept. of Economics, Calcutta University, India)
Ujjaini Mukhopadhyay (Dept. of Economics, Calcutta University, India)

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Abstract

The paper purports to examine the implications of a free education policy and trade liberalization on the child and adult labour markets in the set-up of a Harris-Todaro type general equilibrium model. It has been found that a hike in the education subsidy or inflow of foreign capital may produce counterproductive results on the supply of child labour in the urban area. Moreover, these policies mar raise the level of urban unemployment of adult labour even when two types of labour are not substitutes to each other. The average income of the urban poor families may also decrease as a consequence.

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Paper provided by EconWPA in its series Labor and Demography with number 0510018.

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Length: 21 pages
Date of creation: 23 Oct 2005
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Handle: RePEc:wpa:wuwpla:0510018

Note: Type of Document - pdf; pages: 21
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Web page: http://129.3.20.41

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Related research
Keywords: Child labour urban unemployment of adult labour general equilibrium education subsidy trade liberalization

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
J10 - Labor and Demographic Economics - - Demographic Economics - - - General
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
I28 - Health, Education, and Welfare - - Education - - - Government Policy

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jimenez, E. & Lockheed, M.E., 1995. "Public and Private Secondary Education in Developing Countries. A Comparative Study," World Bank - Discussion Papers 309, World Bank.
  2. Bedi, Arjun S. & Garg, Ashish, 2000. "The effectiveness of private versus public schools: the case of Indonesia," Journal of Development Economics, Elsevier, vol. 61(2), pages 463-494, April. [Downloadable!] (restricted)
  3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2001. "Child Labor: Theory, Evidence and Policy," Discussion Papers Series, Department of Economics, Tufts University 0111, Department of Economics, Tufts University. [Downloadable!]
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  4. Geeta Kingdon & John Knight, 2004. "Unemployment in South Africa: the nature of the beast," Labor and Demography 0409003, EconWPA. [Downloadable!]
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  5. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June. [Downloadable!] (restricted)
  6. Chaudhuri, Sarbajit, 2000. "Rural-Urban Migration, the Informal Sector, Urban Unemployment, and Development Policies: A Theoretical Analysis," Review of Development Economics, Blackwell Publishing, vol. 4(3), pages 353-64, October. [Downloadable!] (restricted)
  7. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, vol. 60(237), pages 79-103, February. [Downloadable!] (restricted)
  8. Grinols, Earl L, 1991. "Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare," Economica, London School of Economics and Political Science, vol. 58(229), pages 107-21, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany. [Downloadable!]
  2. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2005. "Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy," International Trade 0510009, EconWPA. [Downloadable!]
    Other versions:
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