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Does Poverty Influence Prevalence of Child Labor in Developing Countries?

Idris Isyaku Abdullahi, Zaleha Mohd Noor, Rusmawati Said and Ahmad Zubaidi Baharumshah ()
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Idris Isyaku Abdullahi: Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia, Department of Accounting and Finance Technology, Faculty of Management Technology, Abubakar Tafawa Balewa University, Bauchi, Nigeria.
Zaleha Mohd Noor: Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia,
Rusmawati Said: Department of Economics, Faculty of Economics and Management, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia,

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 1, 7-12

Abstract: The present article examined the impact of poverty on child labor prevalence across 42 developing countries based on system-generalize method of moment technique. The main result on the linkage between child labor prevalence and poverty deviated from the popular beliefs in majority of the existing literature that poverty caused child labor prevalence. The finding indicated that poverty is negatively related to child labor prevalence, in the sense that the higher the poverty the lower the child labor prevalence in the sample countries investigated, this finding therefore reconfirmed the wealth paradox of Bhalotra and Heady (2003).

Keywords: Poverty; Remittance; Child Labor Prevalence; System-Generalize Method of Moment; Wealth Paradox; Developing Countries (search for similar items in EconPapers)
JEL-codes: P46 F24 Z22 (search for similar items in EconPapers)
Date: 2016
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