Child Labor: A Microeconomic Perspective

Helena Nielsen and Amaresh Dubey ()
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Amaresh Dubey: Dept. of Economics, Postal: North-Eastern Hill University, Mayurbhanj Complex, Shillong-793014, India

No 01-10, Working Papers from University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: In an empirical microeconomic analysis that allows individual heterogeneity, we test four main

hypotheses from the recent macroeconomic literature on child labor: the substitution, subsistence,

capital market and parental education hypotheses. Using two rich Indian data sets, we find that the

reduction in child labor and/or non-school-enrollment from 1987/88 to 1993/94 is closely associated

with the increased household incomes. However, reduced capital constraints and improved literacy

rates among the parent generation also play minor roles in increasing enrollment rates. A small

counteracting effect comes from an increased need for and an increased value of substituting

children for working household heads.

Keywords: Child labor; Education; Substitution; Subsistence; Capital markets; Parental human capital; India (search for similar items in EconPapers)
JEL-codes: I21 J13 O15 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2001-01-01
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Working Paper: Child Labor: A Microeconomic Perspective (2001)
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