Why does child labor persist with declining poverty?

Sarkar, Jayanta & Sarkar, Dipanwita (2016) Why does child labor persist with declining poverty? Economic Inquiry, 54(1), pp. 139-158.

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We develop a dynamic overlapping generations model to highlight the role of income inequality in explaining the persistence of child labor under declining poverty. Differential investment in two forms of human capital—schooling and health—in the presence of inequality gives rise to a nonconvergent income distribution in the steady state characterized by multiple steady states of relative income with varying levels of education, health, and child labor. The child labor trap thus generated is shown to preserve itself despite rising per capita income. Policy recommendations include public provision of education targeted toward reducing schooling costs for the poor or raising the efficacy of public health infrastructure.

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ID Code: 84967
Item Type: Journal Article
Refereed: Yes
DOI: 10.1111/ecin.12234
ISSN: 1465-7295
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2015 Western Economic Association International
Deposited On: 23 Jun 2015 23:05
Last Modified: 10 Feb 2016 01:07

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