IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0237.html
   My bibliography  Save this article

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

Author

Listed:
  • Chaudhuri, Sarbajit

    (University of Calcutta)

  • Mukhopadhyay, Ujjaini

    (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

  • Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 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
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jimenez, E. & Lockheed, M.E., 1995. "Public and Private Secondary Education in Developing Countries. A Comparative Study," World Bank - Discussion Papers 309, World Bank.
    2. 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.
    3. Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
    4. Manash Gupta, 1994. "Duty-free zone, unemployment, and welfare a note," Journal of Economics, Springer, vol. 59(2), pages 217-236, June.
    5. Bedi, Arjun S. & Garg, Ashish, 2000. "The effectiveness of private versus public schools: the case of Indonesia," Journal of Development Economics, Elsevier, vol. 61(2), pages 463-494, April.
    6. Kingdon, Geeta Gandhi & Knight, John, 2004. "Unemployment in South Africa: The Nature of the Beast," World Development, Elsevier, vol. 32(3), pages 391-408, March.
    7. Grinols, Earl L, 1991. "Unemployment and Foreign Capital: The Relative Opportunity Costs of Domestic Labour and Welfare," Economica, London School of Economics and Political Science, vol. 58(229), pages 107-121, February.
    8. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2001. "Child Labor: Theory, Evidence, and Policy," Working Papers 474, Research Seminar in International Economics, University of Michigan.
    9. Osmani, S. R., 1990. "Wage determination in rural labour markets : The theory of implicit co-operation," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 3-23, November.
    10. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    11. Sarbajit Chaudhuri, 2000. "Rural–Urban Migration, the Informal Sector, Urban Unemployment, and Development Policies: A Theoretical Analysis," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 353-364, October.
    12. 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.
    13. Chandra, Vandana & Khan, M Ali, 1993. "Foreign Investment in the Presence of an Informal Sector," Economica, London School of Economics and Political Science, vol. 60(237), pages 79-103, February.
    14. Gupta, Manash Ranjan, 1993. "Rural-urban migation, informal sector and development policies A theoretical analysis," Journal of Development Economics, Elsevier, vol. 41(1), pages 137-151, June.
    15. Gupta, Manash Ranjan, 1997. "Foreign Capital and the Informal Sector: Comments," Economica, London School of Economics and Political Science, vol. 64(254), pages 353-363, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," Labor Economics Working Papers 22206, East Asian Bureau of Economic Research.
    4. 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.
    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. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chaudhuri, Sarbajit & Mukhopadhyay, Ujjaini, 2009. "Revisiting the Informal Sector: A General Equilibrium Approach," MPRA Paper 52135, University Library of Munich, Germany.
    2. Sarbajit Chaudhuri, 2004. "Incidence of Child Labour, Free Education Policy, and Economic Liberalisation in a Developing Economy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(1), pages 1-25.
    3. Titas Bandopadhyay, 2005. "Universal Education And Its Impact On The Child And The Adult Labour Market," GE, Growth, Math methods 0511002, University Library of Munich, Germany.
    4. Bandopadhyay, Titas Kumar, 2002. "Foreign enclaves, informal sector and urban unemployment: A theoretical analysis," MPRA Paper 3136, University Library of Munich, Germany.
    5. Somasree Poddar & Sarbajit Chaudhuri, 2016. "Economic Reforms and Gender-Based Wage Inequality in the Presence of Factor Market Distortions," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 301-321, December.
    6. Fabre, Alice & Pallage, Stéphane, 2015. "Child labor, idiosyncratic shocks, and social policy," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 394-411.
    7. Sarbajit Chaudhuri, 2010. "Mid‐Day Meal Program And Incidence Of Child Labour In A Developing Economy," The Japanese Economic Review, Japanese Economic Association, vol. 61(2), pages 252-265, June.
    8. M. Ali Khan, 2007. "The Harris-Todaro Hypothesis," Labor Economics Working Papers 22206, East Asian Bureau of Economic Research.
    9. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    10. Sylvain E. Dessy & Flaubert Mbiekop & Stéphane Pallage, 2005. "The Economics of Child Trafficking (Part II)," Cahiers de recherche 0509, CIRPEE.
    11. Sonia Bhalotra, 2007. "Is Child Work Necessary?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 29-55, February.
    12. Chaudhuri, Sarbajit, 2007. "Foreign capital, welfare and urban unemployment in the presence of agricultural dualism," Japan and the World Economy, Elsevier, vol. 19(2), pages 149-165, March.
    13. Xiaochun Li & Qin Shen & Chunlei Gu & Meng Ni, 2013. "Analyzing the effect of advanced agriculture development policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 16(4), pages 349-367, December.
    14. Sarbajit Chaudhuri, 2005. "Pollution And Welfare In The Presence Of Informal Sector: Is There Any Trade-Off?," Others 0510012, University Library of Munich, Germany.
    15. Garcia, Luis, 2006. "Oferta de trabajo infantil y el trabajo en los quehaceres del hogar [The supply of child labor and household work]," MPRA Paper 31402, University Library of Munich, Germany.
    16. Matthias Doepke & Fabrizio Zilibotti, 2005. "The Macroeconomics of Child Labor Regulation," American Economic Review, American Economic Association, vol. 95(5), pages 1492-1524, December.
    17. Francisco Gonzalez & Irving Rosales, 2016. "The case against child labor bans," Working Papers 1601, University of Waterloo, Department of Economics, revised Jan 2016.
    18. Matthias Doepke, "undated". "Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective," UCLA Economics Online Papers 413, UCLA Department of Economics.
    19. Patrick M. Emerson & André Portela Souza, 2011. "Is Child Labor Harmful? The Impact of Working Earlier in Life on Adult Earnings," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 345-385.
    20. Sundaram, Aparna & Vanneman, Reeve, 2008. "Gender Differentials in Literacy in India: The Intriguing Relationship with Women's Labor Force Participation," World Development, Elsevier, vol. 36(1), pages 128-143, January.

    More about this item

    Keywords

    hild labour; Urban unemployment of adult labour; General equilibrium; Education subsidy; Trade liberalization.;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0237. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.