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Eradicating the Crime of Child Labour in Africa: The Roles of Income, Schooling, Fertility, and Foreign Direct Investment

Burhan, Nik Ahmad Sufian and Sidek, Abdul Halim and Ibrahim, Saifuzzaman (2016): Eradicating the Crime of Child Labour in Africa: The Roles of Income, Schooling, Fertility, and Foreign Direct Investment. Published in: Journal of Defence and Security , Vol. 7, No. 1 (2016): pp. 1-16.

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Abstract

African continent has the highest rate of child labour in the world. In this empirical study, we examined the impacts of income per capita, primary school enrolment, fertility rate, and the inward foreign direct investment (FDI) stock on the rate of child labour in Africa. We used the panel data on child labour that comprises of 44 African countries for the period 1980–2003 to assemble the largest number of observation on the variables employed. By employing the Panel Estimated Generalized Least Squares (EGLS) with cross-section weights method, the results of regression analysis showed that the raising of income per capita, FDI, and the percentage of school enrolment were highly significant in reducing the rate of child labour in Africa. Furthermore, a decrease in fertility rate was highly significant to curb the incidence of children employment in the labour market. The weighted-R2 of the panel regression was reported at 95.1%. Following the results, the role of government in implementing public policies was discussed.

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