Agricultural Dualism, Incidence of Child Labour and Subsidy Policies

This paper purports to examine the validity of the common belief that in a developing economy the backward agricultural sector should be subsidized as poorer group of the working population are employed in this sector that send their children out to work out of sheer poverty. A three-sector general equilibrium framework with agricultural dualism and child labour has been employed for the purpose of analysis. It finds that a price subsidy policy to backward agricultural sector is likely to aggravate the child labour incidence while a credit subsidy to advanced agriculture may be effective in reducing the gravity of the problem in the economy. The paper, therefore, questions the desirability of assisting backward agriculture for eradicating child labour in the society.Child labour, general equilibrium, agricultural dualism, subsidy policy.

Foreign Capital, Return to Education and Child labour

This 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 model it shows that inflows of foreign capital can lower the problem of child labour by raising the return to education and reducing the earning opportunities of children. It demonstrates how foreign capital produces favourable effect on the incidence of child labour although it affects wage inequality adversely.Child labour; general equilibrium; foreign capital; return to education; wage inequality

Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism

The paper is aimed at providing a theoretical explanation why policies that affect only the supply side of the child labour problem may not be able to mitigate the incidence of child labour in a developing economy in terms of a three-sector general equilibrium model with agricultural dualism and child labour. Although a poverty alleviation program like subsidization of backward agriculture exerts a downward pressure on the child labour incidence through the supply side by raising adult wage income it ultimately worsens the problem by increasing the demand for child labour resulting from an expansion of backward agriculture. The paper finds that a policy of overall economic growth in the form of an FDI (foreign direct investment) is indeed able to put downward pressures on the child labour problem both through the demand and supply sides. Welfare of the child labour-supplying families also improves consequently.Child labour, general equilibrium, agricultural dualism, subsidy policy, poverty alleviation program, capital led growth

Globalization, consumerism and child labour

This paper highlights the implication of consumerism on the incidence of child in a developing economy using a two-sector general equilibrium model. It finds that although consumerism raises incomes of the poor households and decreases the earning opportunities of the children, this is not sufficient to control the flow of children to workplace and is likely to worsen the child labour situation. The analysis provides a theoretical framework that can be used for explaining the positive linkage between consumerism and child labour.Child labour; globalization; consumerism; general equilibrium

Trade Liberalization in Agriculture in Developed Nations and Incidence of Child Labour in a Developing Economy

This paper is an attempt to analyze the consequence of trade liberalization in agriculture in the developed countries on the incidence of child labour in a developing economy in terms of a three- sector general equilibrium model with informal sectors. Adult labour and child labour are substitutes to each other in the two informal sectors of the economy and are used together apart from capital in producing two exportable commodities. The interesting result that appears from the analysis is that agricultural trade liberalization in the developed countries may be effective in bringing down the incidence of child labour in the system. The paper substantiates the desirability of trade liberalization in agriculture in the developed nations from the perspective of the developing economies for reason other than welfare improvement.Child labour, trade liberalization in agriculture, informal sector, general equilibrium model

Globalization, consumerism and child labour

This paper highlights the implication of consumerism on the incidence of child in a developing economy using a two-sector general equilibrium model. It finds that although consumerism raises incomes of the poor households and decreases the earning opportunities of the children, this is not sufficient to control the flow of children to workplace and is likely to worsen the child labour situation. The analysis provides a theoretical framework that can be used for explaining the positive linkage between consumerism and child labour

Child labour in the presence of agricultural dualism: possible cures

The paper using a three-sector general equilibrium model with agricultural dualism and child labour shows that any fiscal measures designed to benefit backward agriculture cannot cure the problem of child labour in a developing economy although they raise the non-child labour income of the poor households. A policy of capital led growth through inflows of foreign capital, on the contrary, will be able to alleviate the problem by encouraging advanced agriculture and lowering the demand for child labour. The analysis questions the desirability of assisting backward agriculture and advocates in favour of a liberalized investment policy for controlling the menace of child labour in the society

Foreign Capital, Return to Education and Child labour

This 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 model it shows that inflows of foreign capital can lower the problem of child labour by raising the return to education and reducing the earning opportunities of children. It demonstrates how foreign capital produces favourable effect on the incidence of child labour although it affects wage inequality adversely

Poverty alleviation programs, FDI-led growth and child labour under agricultural dualism

The paper is aimed at providing a theoretical explanation why policies that affect only the supply side of the child labour problem may not be able to mitigate the incidence of child labour in a developing economy in terms of a three-sector general equilibrium model with agricultural dualism and child labour. Although a poverty alleviation program like subsidization of backward agriculture exerts a downward pressure on the child labour incidence through the supply side by raising adult wage income it ultimately worsens the problem by increasing the demand for child labour resulting from an expansion of backward agriculture. The paper finds that a policy of overall economic growth in the form of an FDI (foreign direct investment) is indeed able to put downward pressures on the child labour problem both through the demand and supply sides. Welfare of the child labour-supplying families also improves consequently

Agricultural Subsidy Policies Fail to Deal with Child Labour under Agricultural Dualism: What could be the Alternative Policies?

We provide a theoretical explanation why agricultural subsidy policies are likely to fail to ensure simultaneous eradication of the incidence of child labour and improvement in the well-being of the poor working families in terms of a three-sector general equilibrium model with child labour and agricultural dualism. We identify both demand and supply side effects of any policy intervention on child labour. We also suggest two alternative policies, a scheme of direct cash transfer to poor people and economic growth through foreign direct investment (FDI), both of which would be effective in achieving these twin objectives of a welfare government