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Free Education Policy and Trade Liberalization: Consequences on Child and Adult Labour Markets in a Small Open Economy

Author

Listed:
  • Sarbajit Chaudhuri

    (University of Calcutta)

  • Ujjaini Mukhopadhyay

    (University of Calcutta)

Abstract

The paper purports to examine the implications of a free education policy and trade liberalization on the child and adult labour markets in the set-up of a Harris-Todaro type general equilibrium model. It has been found that a hike in the education subsidy or an inflow of foreign capital may produce counterproductive results on the supply of child labour in the urban area. Moreover, these policies may raise the level of urban unemployment of adult labour even when two types of labour are not substitutes to each other. The average income of the urban poor families may also decrease as a consequence.

Suggested Citation

  • Sarbajit Chaudhuri & Ujjaini Mukhopadhyay, 2003. "Free Education Policy and Trade Liberalization: Consequences on Child and Adult Labour Markets in a Small Open Economy," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 336-359.
    • Handle: RePEc:ris:integr:0237
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    Cited by:

    1. Sarbajit Chaudhuri & Jayanta Kumar Dwibedi, 2006. "Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy," Bulletin of Economic Research, Wiley Blackwell, vol. 58(2), pages 129-150, April.
    2. Khan, M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," MPRA Paper 2201, University Library of Munich, Germany.
    3. Chakraborty, Kamalika & Chakraborty, Bidisha, 2018. "Endogenous Altruism, Learning by Doing Effect and Impact of Domestic Policies on Child Labour," MPRA Paper 89229, University Library of Munich, Germany.
    4. Titas Kumar Bandopadhyay, 2007. "Trade Reform, Capital Mobility, and Efficiency Wage in a Harris-Todaro Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(2), pages 163-174.
    5. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Learning by doing, low level equilibrium trap, and effect of domestic policies on child labour," MPRA Paper 74712, University Library of Munich, Germany.
    6. Chakraborty, Kamalika & Chakraborty, Bidisha, 2016. "Child labour ban versus Education subsidy in a model with learning by doing effect in unskilled work," MPRA Paper 74203, University Library of Munich, Germany.
    7. Kamalika Chakraborty & Bidisha Chakraborty, 2024. "Endogenous Altruism and Impact of Child Labour Ban and Education Subsidy on Child Labour," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 17(3), pages 1097-1113, June.
    8. Rakhi Banerjee & Ranjanendra Narayan Nag, 2013. "Globalization, Child Labour and Development Policies: A Theoretical Analysis," Foreign Trade Review, , vol. 48(1), pages 83-104, February.

    More about this item

    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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