Abstract:
The objective of this paper is to re-examine the impact of universal education policy on the incidence of child labour and on the adult unemployment in a job-search model. The paper assumes the double role played by the universal education programme. It raises the number of school going children on the one hand and it affects the potential supply of child labour on the other hand. It has been found that govt’s free education policy for the rural sector only, for the urban sector only and for the both of the two sectors lowers the incidence of child labour and accentuates the problem of adult urban unemployment. Our findings differ from that obtained in Chowdhuri and Mukhopadhaya (2003), where we find that free education policy intensifies the problem of child labour.