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

Abstract

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

Chaudhuri, Sarbajit, Incidence of Child Labour, Free Education Policy and Trade Liberalization in a Developing Economy (March 30, 2002). Available at SSRN: https://ssrn.com/abstract=311719 or http://dx.doi.org/10.2139/ssrn.311719

Sarbajit Chaudhuri (Contact Author)

University of Calcutta ( email )

56A, B.T. Road
Kolkata, West Bengal 700 050
India
+91 33 2557 5082 (Phone)
+91 33 2844 1490 (Fax)

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