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Agricultural Dualism, Incidence of Child Labour and Subsidy Policies

Jayanta Dwibedi () and Sarbajit Chaudhuri ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper purports to examine the validity of the common belief that in a developing economy the backward agricultural sector should be subsidized as poorer group of the working population are employed in this sector that send their children out to work out of sheer poverty. A three-sector general equilibrium framework with agricultural dualism and child labour has been employed for the purpose of analysis. It finds that a price subsidy policy to backward agricultural sector is likely to aggravate the child labour incidence while a credit subsidy to advanced agriculture may be effective in reducing the gravity of the problem in the economy. The paper, therefore, questions the desirability of assisting backward agriculture for eradicating child labour in the society.

Keywords: Child labour; general equilibrium; agricultural dualism; subsidy policy. (search for similar items in EconPapers)
JEL-codes: J13 J10 O17 D10 (search for similar items in EconPapers)
Date: 2009-06-15
New Economics Papers: this item is included in nep-agr, nep-dev and nep-lab
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