Incidence of Child Labour, Free Education Policy and Trade Liberalization in a Developing Economy
23 Pages Posted: 30 May 2002
Date Written: March 30, 2002
The paper analyzes the implications of a subsidy policy on education and different liberalized trade and investment policies on the incidence of child labour in a general equilibrium framework with endogenous determination of family size and enrollment of children to schools from each poor working family. It shows that these policies, if undertaken concurrently, may produce mutually contradictory effects, thereby producing little or no impact on the incidence of child labour. The paper provides a theoretical answer as to why the incidence of child labour has not significantly declined in the developing economies in spite of economic development and globalization.
Keywords: Child labour, general equilibrium, family size, education subsidy, trade liberalization
JEL Classification: F10, J10, J13, I28
Suggested Citation: Suggested Citation