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Impact of adverse economic shocks on the Indian child labour market and the schooling of children of poor households

  • Karan Singh, B

This paper analyses the impact of adverse economic shocks on human capital formation in the case of India. It uses the extended theoretical model of Basu and Van (1998). The study has been carried out for the period between 1999 and 2002 and covers 385 districts. The results show that during a crisis, there is a fall in the school enrollment rate and a rise in the child labour participation rate. The study also argues that in the absence of a well-functioning credit market, to mitigate the adverse economic shocks on the children of poor households, the government must provide an incremental cash/in-kind conditional transfers to poor households with children.

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File URL: http://mpra.ub.uni-muenchen.de/30958/1/MPRA_paper_30958.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30958.

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Date of creation: 17 May 2011
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Handle: RePEc:pra:mprapa:30958
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  1. Edmonds, Eric V. & Pavcnik, Nina & Topalova, Petia, 2007. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," IZA Discussion Papers 2611, Institute for the Study of Labor (IZA).
  2. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2010. "Child labor and household wealth: Theory and empirical evidence of an inverted-U," Journal of Development Economics, Elsevier, vol. 91(1), pages 8-14, January.
  3. Petia Topalova & Shawn Cole & Xavier Gene & Jeremy Tobacman & Robert Townsend & James Vickery, 2011. "Barriers to Household Risk Management: Evidence from India," Working Papers id:4293, eSocialSciences.
  4. Guarcelllo, Lorenzo & Mealli, Fabrizia & Rosati, Furio Camillo, 2003. "Household vulnerability and child labor : the effect of shocks, credit rationing and insurance," Social Protection Discussion Papers 29136, The World Bank.
  5. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  6. Eric V. Edmonds & Nina Pavcnik, 2005. "Child Labor in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 199-220, Winter.
  7. Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, vol. 64(3), pages 311-35, July.
  8. Grimm, M., 2009. "Food price inflation and children's schooling," ISS Working Papers - General Series 18721, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  9. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  10. Suzanne Duryea & Jere R. Behrman & Miguel Székely, 1999. "Schooling Investments and Macroeconomic Conditions: A Micro-Macro Investigation for Latin America and the Caribbean," Research Department Publications 4184, Inter-American Development Bank, Research Department.
  11. 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.
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