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Foreign Capital, Return to Education and Child labour

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  • Dwibedi, Jayanta
  • Chaudhuri, Sarbajit

Abstract

This paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy. Using a three-sector general equilibrium model it shows that inflows of foreign capital can lower the problem of child labour by raising the return to education and reducing the earning opportunities of children. It demonstrates how foreign capital produces favourable effect on the incidence of child labour although it affects wage inequality adversely.

Suggested Citation

  • Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2007. "Foreign Capital, Return to Education and Child labour," MPRA Paper 2646, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:2646
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    References listed on IDEAS

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    1. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
    2. Jafarey, Saqib & Lahiri, Sajal, 2002. "Will trade sanctions reduce child labour?: The role of credit markets," Journal of Development Economics, Elsevier, vol. 68(1), pages 137-156, June.
    3. Camelia Minoiu & Sanjay G. Reddy, 2008. "Chinese Poverty: Assessing The Impact Of Alternative Assumptions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(4), pages 572-596, December.
    4. Yabuuchi, Shigemi & Chaudhuri, Sarbajit, 2007. "International migration of labour and skilled-unskilled wage inequality in a developing economy," Economic Modelling, Elsevier, vol. 24(1), pages 128-137, January.
    5. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics,in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
    6. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
    7. Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2007. "Economic liberalization and wage inequality in the presence of labour market imperfection," International Review of Economics & Finance, Elsevier, vol. 16(4), pages 592-603.
    8. Cigno, Alessandro & Rosati, Furio C. & Guarcello, Lorenzo, 2002. "Does Globalization Increase Child Labor?," World Development, Elsevier, vol. 30(9), pages 1579-1589, September.
    9. Wade, Robert Hunter, 2004. "Is Globalization Reducing Poverty and Inequality?," World Development, Elsevier, vol. 32(4), pages 567-589, April.
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    Citations

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    Cited by:

    1. Éva G. Fekete, 2013. "CROSSEDU: új gazdasági képzési kurzusok a régióban," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 6-16.
    2. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2010. "Child labour in the presence of agricultural dualism: possible cures," MPRA Paper 23487, University Library of Munich, Germany.
    3. Chaudhuri, Sarbajit, 2014. "Does Public Assistance for Skills Formation Necessarily Improve Wage Inequality in the Future?," MPRA Paper 57788, University Library of Munich, Germany.
    4. Bettina Martus, 2013. "Hol van a (kor)határ? - A gyermekmunka következményei és megoldási lehetőségei," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 100-115.
    5. repec:bla:rdevec:v:21:y:2017:i:2:p:383-403 is not listed on IDEAS
    6. Éva G. Fekete, 2013. "Foglalkoztatás bővítése a helyi elsődleges munkaerőpiacon," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 70-81.
    7. Ivana Hvižďáková, 2013. "National Factors of Cluster Development and Management," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 57-69.
    8. Dezső Szakály, 2013. "Technológiai háború! – Miből készülnek a modernizáció rejtett kulcsai?," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 32-45.
    9. repec:eee:ecmode:v:69:y:2018:i:c:p:67-81 is not listed on IDEAS
    10. Ádám Horváth & Melinda Mihály & Bálint Supka, 2013. "A foglalkoztatás fejlesztésének lehetőségei a Fehérgyarmati kistérségben," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 124-130.
    11. 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.
    12. Chaudhuri, Sarbajit, 2010. "Foreign Direct Investment, Child Labour and Unemployment of Unskilled Labour in a Dual Economy," MPRA Paper 20610, University Library of Munich, Germany.
    13. Iveta Korobaničová, 2013. "Marketing in Small and Medium Enterprises - A case study in Slovakia," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 82-89.
    14. Dwibedi, Jayanta & Chaudhuri, Sarbajit, 2011. "Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism," MPRA Paper 29997, University Library of Munich, Germany.
    15. Eszter Siposné Nádori, 2013. "Szegénység és boldogság-érzet területi különbségei Európában és a világon," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 90-99.
    16. Laura Czifra & Aranka Mészáros, 2013. "A stafétabot átadása: avagy az újabb generációk megjelenése a munkahelyeken," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 116-122.
    17. Dwibedi, Jayanta Kumar & Chaudhuri, Sarbajit, 2014. "Agricultural subsidy policies fail to deal with child labour under agricultural dualism: What could be the alternative policies?," Research in Economics, Elsevier, vol. 68(3), pages 277-291.
    18. Natasa Urbančíková & Oto Hudec, 2013. "Unlocking Potential of Social Capital in the Border Regions," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 17-31.
    19. Martina Prochádzková, 2013. "Regional innovation networks from two perspectives – innovation as an essence of local development (The Case of Slovak region)," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 10(2), pages 46-56.
    20. Chaudhuri, Sarbajit, 2010. "Economic recession, demand constraint and labour markets in a developing economy," MPRA Paper 27433, University Library of Munich, Germany.
    21. repec:bla:rdevec:v:21:y:2017:i:4:p:1178-1190 is not listed on IDEAS

    More about this item

    Keywords

    Child labour; general equilibrium; foreign capital; return to education; wage inequality;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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