Development of financial capital markets and the role of children as economic assets
This paper examines the link between development of financial capital markets, old-security and fertility, when child labour is prevalent. The model demonstrates that when returns from financial capital markets increase, fertility levels and investment in children's schooling are reduced, but child labour levels increase. However, the return to child labour is also an important determinant of fertility decisions. In particular if there is a child labour market, fertility decisions are determined mainly by the child wage rate and child rearing costs. Finally, the model shows that the development of financial capital markets implies a reduction in the borrowing rates and leads to an increase in schooling investments and a reduction in child labour. © 2001 John Wiley & Sons, Ltd.
Volume (Year): 13 (2001)
Issue (Month): 1 ()
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