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Relative wage, child labor, and human capital

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  • C. Simon Fan

Abstract

This paper analyses child labor and children's human capital formation in response to the changes of the relative wage-productivity between child labor and adult labor. It implies that because children's labor market participation raises the financial resources spent on their education, a small increase in child labor may enhance children's human capital. It also shows that in a poor economy, the laws that punish or partially deter child labor may result in children working more and accumulating less human capital. Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpf056
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Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 56 (2004)
Issue (Month): 4 (October)
Pages: 687-700

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Handle: RePEc:oup:oxecpp:v:56:y:2004:i:4:p:687-700
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  1. Emmanuel Skoufias & Susan Wendy Parker, 2001. "Conditional Cash Transfers and Their Impact on Child Work and Schooling: Evidence from the PROGRESA Program in Mexico," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2001), pages 45-96, August.
  2. Oded Galor & Omer Moav, 2002. "Natural Selection and the Origin of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1133-1191.
  3. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
  4. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
  5. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
  6. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
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  8. Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, vol. 112(482), pages 810-828, October.
  9. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Mar.
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  12. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  13. Horrell, Sara & Humphries, Jane & Voth, Hans-Joachim, 2001. "Destined for Deprivation: Human Capital Formation and Intergenerational Poverty in Nineteenth-Century England," Explorations in Economic History, Elsevier, vol. 38(3), pages 339-365, July.
  14. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Nov.
  15. Sonia Bhalotra & Chris Heady, 2000. "Child farm labour: theory and evidence," LSE Research Online Documents on Economics 6654, London School of Economics and Political Science, LSE Library.
  16. anonymous, 2000. "Western economic developments," Western economic developments, Federal Reserve Bank of San Francisco, issue Feb.
  17. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages 158-175, March.
  18. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
  19. anonymous, 2000. "Reviewing economic development needs," Banking and Community Perspectives, Federal Reserve Bank of Dallas, issue 2, pages 6-7.
  20. Glewwe, Paul & Jacoby, Hanan G. & King, Elizabeth M., 2001. "Early childhood nutrition and academic achievement: a longitudinal analysis," Journal of Public Economics, Elsevier, vol. 81(3), pages 345-368, September.
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Cited by:

  1. Han PHOUMIN & Seiichi FUKUI, 2006. "Cambodian Child's Wage Rate, Human Capital and Hours Worked Trade-off: Simple Theoretical and Empirical Evidence for Policy Implications," GSICS Working Paper Series 6, Graduate School of International Cooperation Studies, Kobe University.
  2. Ellen Webbink & Jeroen Smits & Eelke Jong, 2013. "Household and Context Determinants of Child Labor in 221 Districts of 18 Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(2), pages 819-836, January.
  3. Miwa Kana & Han Phoumin & Fukui Seiichi, 2010. "Does Child Labour Have a Negative Impact on Child Education and Health? A Case Study in Rural Cambodia," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 357-382.
  4. Rafael Novella & Claire Zanuso, 2015. "Reallocating Children’s Time: Coping Strategies after the 2010 Haiti Earthquake," Working Papers DT/2015/13, DIAL (Développement, Institutions et Mondialisation).
  5. Chakraborty, Bidisha & Chakraborty, Kamalika, 2016. "Low Level Equilibrium Trap, Unemployment, School Quality, Child Labour and Human Capital Formation," MPRA Paper 74621, University Library of Munich, Germany.
  6. Han PHOUMIN & Seiichi FUKUI, 2006. "Hours Supplied of Cambodian Child Labor and School Enrolment: Simple Theoretical and Empirical Evidence for Policy Implications," GSICS Working Paper Series 5, Graduate School of International Cooperation Studies, Kobe University.
  7. Contreras, Salvador, 2008. "Child labor participation, human capital accumulation, and economic development," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 499-512, March.
  8. Bidisha Chakraborty & Kamalika Chakraborty, 2014. "Child Labour, human capital formation and size of landholding: short run and long run analysis," Economics Bulletin, AccessEcon, vol. 34(3), pages 2024-2037.

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