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Relative wage, child labor, and human capital
Authors:Simon Fan  C
Institution:Department of Economics, Lingnan University, Tuen Mun, Hong Kong; e-mail: fansimon{at}ln.edu.hk
Abstract:This paper analyses child labor and children's human capitalformation in response to the changes of the relative wage/productivitybetween child labor and adult labor. It implies that becausechildren's labor market participation raises the financial resourcesspent on their education, a small increase in child labor mayenhance children's human capital. It also shows that in a pooreconomy, the laws that punish or partially deter child labormay result in children working more and accumulating less humancapital.
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