Policies to combat child labor: A dynamic analysis
Satya P. Das () and
Rajat Deb
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Satya P. Das: Indian Statistical Institute, New Delhi
Rajat Deb: Indian Statistical Institute, New Delhi
Discussion Papers from Indian Statistical Institute, Delhi
Abstract:
This paper analyzes child labor in a fully dynamic model with credit constraints. It considers the ong-run and short-run effects of an array of policies like lump-sum subsidy, enrollment subsidy, improvement in primary education and variations in loan market parameters. It is shown that some policies that reduce child labor in the long run may lead to an increase in child labor in the short run. Marginal changes in the borrowing rate or credit limit do not affect the long-run incidence of child labor if the rate of time preference is constant. Implications of variable rate of time preference are also examined.
Pages: 35 pages
Date: 2003-12
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Persistent link: https://EconPapers.repec.org/RePEc:alo:isipdp:04-01
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