Relative wage, child labor, and human capital

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.