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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

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Child labour; general equilibrium; foreign capital; return to education; wage inequality;
    All these keywords.

    JEL classification:

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

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