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Child Labor: A Microeconomic Perspective

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  • Nielsen, Helena Skyt

    (Department of Economics, Aarhus School of Business)

  • Dubey, Amaresh

    (Dept. of Economics)

Abstract

In an empirical microeconomic analysis that allows individual heterogeneity, we test four main hypotheses from the recent macroeconomic literature on child labor: the substitution, subsistence, capital market and parental education hypotheses. Using two rich Indian data sets, we find that the reduction in child labor and/or non-school-enrollment from 1987/88 to 1993/94 is closely associated with the increased household incomes. However, reduced capital constraints and improved literacy rates among the parent generation also play minor roles in increasing enrollment rates. A small counteracting effect comes from an increased need for and an increased value of substituting children for working household heads.

Suggested Citation

  • Nielsen, Helena Skyt & Dubey, Amaresh, 2001. "Child Labor: A Microeconomic Perspective," Working Papers 01-10, University of Aarhus, Aarhus School of Business, Department of Economics.
  • Handle: RePEc:hhs:aareco:2001_010
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    References listed on IDEAS

    as
    1. 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.
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    More about this item

    Keywords

    Child labor; Education; Substitution; Subsistence; Capital markets; Parental human capital; India;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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