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Child Labour, Fertility, and Economic Growth

Author

Listed:
  • Moshe Hazan

    (Hebrew University of Jerusalem)

  • Binyamin Berdugo

    (Hebrew University of Jerusalem)

Abstract

This paper explores the evolution of child labour, fertility and human capital in the process of development. In early stages of development, the economy is in a development trap where child labour is abundant, fertility is high and output per capita is low. Technological progress, however, gradually increases the wage differential between parental and child labour, thereby inducing parents to substitute child education for child labour and reduce fertility. The economy takes off to a sustained growth steady--state equilibrium where child labour is abolished and fertility is low. Prohibition of child labour expedites the transition process and generates a Pareto dominating outcome. Copyright Royal Economic Society 2002

Suggested Citation

  • Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, vol. 112(482), pages 810-828, October.
  • Handle: RePEc:ecj:econjl:v:112:y:2002:i:482:p:810-828
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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