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Child Labour and Resistance to Change

Author

Listed:
  • Giorgio Bellettini
  • Carlotta Berti Ceroni
  • Gianmarco I. P. Ottaviano

Abstract

We study the interaction between technological innovation, investment in human capital and child labour. In a two‐stage game, first firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labour depends on parameters related to technology, parents' altruism and the diffusion of firms' property. Child labour is due either to firms' reluctance to innovate or to households' unwillingness to educate, or both. In some cases, compulsory schooling laws or a ban on child labour are welfare‐reducing, whereas a subsidy for innovation is the right tool to eliminate child labour and increase welfare.

Suggested Citation

  • 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(287), pages 397-411, August.
    • Handle: RePEc:bla:econom:v:72:y:2005:i:287:p:397-411
    DOI: 10.1111/j.0013-0427.2005.00422.x
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    Cited by:

    1. Burhan, Nik Ahmad Sufian & Sidek, Abdul Halim & Ibrahim, Saifuzzaman, 2016. "Eradicating the Crime of Child Labour in Africa: The Roles of Income, Schooling, Fertility, and Foreign Direct Investment," MPRA Paper 77250, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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