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.
Number of Pages in PDF File: 21
Keywords: Adverse economic shock, Child labour, Poverty, Labour market, Education, Human capital formation, Mid-day meal programme
Date posted: May 18, 2011
; Last revised: April 25, 2012
B., Karan Singh, Impact of Adverse Economic Shocks on the Indian Child Labour Market and the
Schooling of Children of Poor Households (February 12, 2011). Available at SSRN: http://ssrn.com/abstract=1760254 or http://dx.doi.org/10.2139/ssrn.1760254