Munich Personal RePEc Archive

Foreign Capital, Return to Education and Child labour

Dwibedi, Jayanta and Chaudhuri, Sarbajit (2007): Foreign Capital, Return to Education and Child labour.

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Abstract

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.

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