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Foreign Capital, Return to Education and Child labour

Jayanta Dwibedi () and Sarbajit Chaudhuri ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper attempts to identify the different channels through which economic reforms can affect the incidence of child labour in a developing economy. Using a three-sector general equilibrium model it shows that inflows of foreign capital can lower the problem of child labour by raising the return to education and reducing the earning opportunities of children. It demonstrates how foreign capital produces favourable effect on the incidence of child labour although it affects wage inequality adversely.

Keywords: Child labour; general equilibrium; foreign capital; return to education; wage inequality (search for similar items in EconPapers)
JEL-codes: F21 (search for similar items in EconPapers)
Date: 2007-03-04
New Economics Papers: this item is included in nep-dev and nep-edu
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Journal Article: Foreign capital, return to education and child labour (2010) Downloads
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