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

Author

Listed:
  • Nigar Hashimzade

    (School of Economics, University of Reading)

  • Uma Kambhampati

    (School 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.

Suggested Citation

  • Nigar Hashimzade & Uma Kambhampati, 2009. "Growth and Inverted U in Child Labour: A Dual Economy Approach," Economics Discussion Papers em-dp2009-07, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2009-07
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    References listed on IDEAS

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