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Education, Poverty and Child Labour

  • Alice FABRE
  • Emmanuelle AUGERAUD-VERON

The purpose of the paper is to investigate the effects of poverty and educational policies on school attendance, child labour and growth. We consider an OLG model, with parental educational choices. It is assumed there is a trade off between child labour and human capital accumulation. If parents don't choose for quality of education, it is shown that a poverty trap may occur in the presence of a consumption subsistence or when the quality of education is inadequate. A private education system, where schooling quality is endogeneized can improve growth and reduce child labour, and cycles may occur. A public education system does not generate cycles, but it can generate more easely a poverty trap. In this case, only subsidies would help to reduce poverty and, consequently, child labou

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Paper provided by Econometric Society in its series Econometric Society 2004 Far Eastern Meetings with number 738.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:feam04:738
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  1. Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09.
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  9. Rebelo, Sergio, 1991. "Growth in open economies," Policy Research Working Paper Series 799, The World Bank.
  10. Paul Glewwe, 2002. "Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 436-482, June.
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  14. Peter Jensen & Helena Skyt Nielsen, 1997. "Child labour or school attendance? Evidence from Zambia," Journal of Population Economics, Springer, vol. 10(4), pages 407-424.
  15. Costas Azariadis, 1996. "The Economics of Poverty Traps Part One: Complete Markets," Working Papers 9606, Centro de Investigacion Economica, ITAM.
  16. 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.
  17. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  18. 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 C158-75, March.
  19. Dasgupta, Partha, 1998. " The Economics of Poverty in Poor Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 41-68, March.
  20. Psacharopoulos, George, 1989. "Time trends of the returns to education: Cross-national evidence," Economics of Education Review, Elsevier, vol. 8(3), pages 225-231, June.
  21. Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
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