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Estimation of the Contribution of Child Labour to the Formation of Rural Incomes: An Application to Nepal

  • Federico Perali

    ()

  • Furio Rosati

    ()

  • Martina Menon

This paper estimates the contribution of child labour to the formation of household income in rural enterprises. The contribution to household income from the employment of children comes either from the employment on-farm at a shadow wage or off-farm in the agricultural or other sectors. The paper uses a cost function with household labour as a quasi-fixed factor in order to estimate the shadow wage for each component of the household labour force. The study also provides an estimate of contribution of child labour to household income in the rural sector, both at the household and national level. A set of simulation also highlight the role that child labour plays in insuring household subsistence and how it does affects income distribution.

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File URL: http://www.child.carloalberto.org/images/wp/child10_2005.pdf
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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp10_05.

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Length: 41 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:wpc:wplist:wp10_05
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Phone: 39-011=6702726
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Web page: http://www.carloalberto.org/child-collegiocarloalberto/
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  1. Vassilis A. Hajivassiliou & Daniel L. McFadden & Paul Ruud, 1993. "Simulation of Multivariate Normal Rectangle Probabilities and their Derivatives: Theoretical and Computational Results," Working Papers _024, Yale University.
  2. Sonia Bhalotra & Christopher Heady, 2003. "Child Farm Labor: The Wealth Paradox," World Bank Economic Review, World Bank Group, vol. 17(2), pages 197-227, December.
  3. Arguea, N.M. & Hsiao, C., 1992. "Econometric Issues of Estimating Hedonic Price Functions- with an Application to the U.S. Market for Automobiles," Papers 9203, Southern California - Department of Economics.
  4. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
  5. Vassilis A. Hajivassiliou & Axel Borsch-Supan, 1990. "Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models," Cowles Foundation Discussion Papers 960, Cowles Foundation for Research in Economics, Yale University.
  6. Ravallion, Martin & Wodon, Quentin, 1999. "Does child labor displace schooling? - evidence on behavioral responses to an enrollment subsidy," Policy Research Working Paper Series 2116, The World Bank.
  7. Goldberger, Arthur S, 1972. "Maximum-Likelihood Estimation of Regressions Containing Unobservable Independent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(1), pages 1-15, February.
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