Foreign Capital, Return to Education and Child Labour

8 Pages Posted: 26 Apr 2007

See all articles by Jayanta Kumar Dwibedi

Jayanta Kumar Dwibedi

Brahmmananda Keshab Chandra (B.K.C.) College - Department of Economics

Sarbajit Chaudhuri

University of Calcutta

Date Written: March 2007

Abstract

This paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy. Using a three-sector general equilibrium model it shows that inflows of foreign capital can lower the problem of child labour by raising the return to education and reducing the earning opportunities of children. It demonstrates how foreign capital produces favourable effect on the incidence of child labour although it affects wage inequality adversely.

Keywords: Child labour, general equilibrium, foreign capital, return to education, wage inequality

JEL Classification: F10, J10, J13, I28

Suggested Citation

Dwibedi, Jayanta Kumar and Chaudhuri, Sarbajit, Foreign Capital, Return to Education and Child Labour (March 2007). Available at SSRN: https://ssrn.com/abstract=981983 or http://dx.doi.org/10.2139/ssrn.981983

Jayanta Kumar Dwibedi

Brahmmananda Keshab Chandra (B.K.C.) College - Department of Economics ( email )

Kolkata 700 035 West Bengal
India
91-33-564-4950 (Phone)

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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