Growth and Inverted U in Child Labour: A Dual Economy Approach

Nigar Hashimzade and Uma Kambhampati

No em-dp2009-07, Economics Discussion Papers from Department of Economics, University of Reading

Abstract: While it is commonly accepted that the main cause of child labour is poverty, empirical observations suggest that economic growth is not always associated with the reduction in child labour. We show, in a dual economy framework, that the eĊect of productivity growth upon child labour may be positive or negative. In particular, changes in the productivity gap between the modern and the traditional sectors, due to the technological progress, can generate an increase in child labour. In a dynamic version of the model we also investigate how this effect depends on the quality of schooling.

Pages: 20 pages
Date: 2009-05-03
New Economics Papers: this item is included in nep-dev, nep-fdg and nep-lab
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