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Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?

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  • Dwibedi, Jayanta Kumar
  • Chaudhuri, Sarbajit

Abstract

We provide a theoretical explanation why agricultural subsidy policies are likely to fail to ensure simultaneous eradication of the incidence of child labour and improvement in the well-being of the poor working families in terms of a three-sector general equilibrium model with child labour and agricultural dualism. We identify both demand and supply side effects of any policy intervention on child labour. We also suggest two alternative policies, a scheme of direct cash transfer to poor people and economic growth through foreign direct investment (FDI), both of which would be effective in achieving these twin objectives of a welfare government.

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  • Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2014. "Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?," Research in Economics, Elsevier, vol. 68(3), pages 277-291.
    • Handle: RePEc:eee:reecon:v:68:y:2014:i:3:p:277-291
    DOI: 10.1016/j.rie.2014.05.003
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    17. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2007. "Foreign Capital Inflow, Fiscal Policies And Incidence Of Child Labour In A Developing Economy," Manchester School, University of Manchester, vol. 75(1), pages 17-46, January.
    18. Jacobus de Hoop & Furio C. Rosati, 2014. "Cash Transfers and Child Labor," The World Bank Research Observer, World Bank, vol. 29(2), pages 202-234.
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    Cited by:

    1. Sarbajit Chaudhuri & Arnab Ghosh & Sattiki Deb, 2018. "Foreign Direct Investment and Rural Farm and Nonfarm Sectors in a Developing Economy," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(3), pages 787-810, September.
    2. Sushobhan Mahata & Jonaki Sengupta & Ranjanendra Narayan Nag, 2021. "Child Labour and Trade-Related Price Policies in a Developing Economy: A Trade-Theoretical Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(3), pages 685-704, September.
    3. Polyxeni Kechagia & Theodore Metaxas, 2023. "Capital Inflows and Working Children in Developing Countries: An Empirical Approach," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    4. Raymond Boadi Frempong, 2023. "Do subsidies on seed and fertilizer lead to child labour? Evidence from Malawi," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    5. Kechagia, Polyxeni & Metaxas, Theodore, 2020. "FDI, child labor and gender issues in Sub – Saharan Africa: an empirical approach," MPRA Paper 104311, University Library of Munich, Germany.
    6. Jayanta Kumar Dwibedi & Sugata Marjit, 2017. "Relative Affluence and Child Labor—Explaining a Paradox," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1178-1190, November.
    7. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2017. "Foreign Direct Investment and Domestic Child Labor," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 383-403, May.
    8. Mwale, Martin Limbikani, 2022. "Unintended consequences of farm input subsidies: women’s contraceptive usage and knock-on effects on children," MPRA Paper 112689, University Library of Munich, Germany.

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    More about this item

    Keywords

    Child labour; General equilibrium; Agricultural dualism; Agricultural subsidy policy; Direct cash transfer; FDI-led growth;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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