Child mortality, child labor, fertility, and demographics

This study analyzes how increased child survival probability affects fertility, child labor, and education investments. We consider an overlapping generations model in which skilled and unskilled workers coexist. An increase in child survival probability affects skilled and unskilled workers differently. We study three alternative policies for increasing the proportion of skilled workers in the economy: increased child survival probability, a ban on child labor, and child education. The model reveals that an increase in child survival probability and a ban on child labor can decrease the proportion of skilled workers and the average income in the economy; however, the child education policy, which supports skilled and unskilled workers’ investments in their children’s education by building schools, can increase the proportion of skilled workers and the average income in the economy.