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Foreign capital,return to education and child labour
Authors:Jayanta Kumar Dwibedi  Sarbajit Chaudhuri
Institution:1. Dept. of Economics, B.K.C. College, Kolkata, India;2. Dept. of Economics, University of Calcutta, India;1. Department of Chemistry, University College of Science, University of Calcutta, 92, A.P.C. Road, Kolkata 700 009, India;2. School of Chemistry, The University of Reading, P.O. Box 224, Whiteknights, Reading RG6 6AD, UK;1. University of Calcutta, 92, A.P.C. Road, Kolkata 700 009, India;2. Indian Institute of Chemical Engineers. Kolkata 700 032, India;1. Dept. of Electronics & Communication, Academy of Technology, Adisaptagram, Hooghly, India;2. Institute of Radio Physics and Electronics, University of Calcutta, 92 A.P.C. Road, Kolkata, India;1. Dept. of Economics, B.K.C. College, Kolkata, India;2. Dept. of Economics, University of Calcutta, Kolkata, India
Abstract:The 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 framework with child labour. We show that reduction in poverty is not a necessary condition for the problem of child labour to improve in the developing economies. Economic reforms like an inflow of foreign capital can mitigate the incidence of child labour by raising the return to education and lowering the earning opportunities of children.
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