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Child labour in the presence of agricultural dualism: possible cures

Jayanta Dwibedi () and Sarbajit Chaudhuri ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper using a three-sector general equilibrium model with agricultural dualism and child labour shows that any fiscal measures designed to benefit backward agriculture cannot cure the problem of child labour in a developing economy although they raise the non-child labour income of the poor households. A policy of capital led growth through inflows of foreign capital, on the contrary, will be able to alleviate the problem by encouraging advanced agriculture and lowering the demand for child labour. The analysis questions the desirability of assisting backward agriculture and advocates in favour of a liberalized investment policy for controlling the menace of child labour in the society.

Keywords: Child labour; general equilibrium; agricultural dualism; subsidy policy; capital led growth. (search for similar items in EconPapers)
JEL-codes: J13 J10 O17 D10 O12 (search for similar items in EconPapers)
Date: 2010-05-15
New Economics Papers: this item is included in nep-agr and nep-lab
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