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

Dwibedi, Jayanta and Chaudhuri, Sarbajit (2014): Agricultural Subsidy Policies Fail to Deal with Child Labour under Agricultural Dualism: What could be the Alternative Policies?

Abstract

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Child labour, general equilibrium, agricultural dualism, agricultural subsidy policy, direct cash transfer, FDI-led growth
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; J - Labor and Demographic Economics > J1 - Demographic Economics; J - Labor and Demographic Economics > J1 - Demographic Economics > J10 - General; J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development

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