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Child Labour Use and Economic Growth: An Econometric Analysis

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  • Mahmood Hussain
  • Keith E. Maskus

Abstract

We present a simple dynamic theory of child labour, human capital formation, and economic growth that is consistent with some of the main features of child labour and economic development. The model supports a number of testable hypotheses, which we investigate econometrically in a systems approach. Using panel data from 64 countries in the period 1960–1980, the econometric results match the theory well. The incidence of child labour is negatively related to parental human capital and education quality, but is positively correlated with education cost. Further, countries with higher amounts of child labour tend to have lower stocks of human capital in the future. There is also a convergence phenomenon between the level and growth of human capital. The lower the current stock of human capital, the higher is current child‐labour use and the faster is the growth rate of human capital.

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  • Mahmood Hussain & Keith E. Maskus, 2003. "Child Labour Use and Economic Growth: An Econometric Analysis," The World Economy, Wiley Blackwell, vol. 26(7), pages 993-1017, July.
    • Handle: RePEc:bla:worlde:v:26:y:2003:i:7:p:993-1017
    DOI: 10.1111/1467-9701.00560
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    Cited by:

    1. Acaroglu, Hakan, 2010. "An empirical approach about some important features of child labor in Turkey," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 3(3), pages 1-12, October.
    2. repec:rdg:wpaper:em-dp2009-07 is not listed on IDEAS
    3. Burhan, Nik Ahmad Sufian & Md. Yunus, Melor & Tovar, María Elena Labastida & Burhan, Nik Mohd Ghazi, 2016. "Why are cognitive abilities of children so different across countries? The link between major socioeconomic factors and PISA test scores," MPRA Paper 77239, University Library of Munich, Germany.
    4. Mahendra Reddy, 2013. "Child Labour Use in a Small Developing Country: Is it Luxury, Distributional or Substitution Axiom?," International Journal of Business and Social Research, LAR Center Press, vol. 3(5), pages 82-91, May.
    5. Lutfullah Lutf & Shahadat I Haq Yasini, 2018. "Factors Contributing to Child Labor in Afghanistan: A Case Study in Jalalabad City," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 348-372, September.
    6. Sebastian Braun, 2006. "Core Labour Standards and FDI: Friends or Foes? The Case of Child Labour," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 765-791, December.

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