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| Author: | Bellettini, G. Berti Ceroni, C. Ottaviano, G.I.P. |
| Title: | Child labour and resistance to change |
| Journal: | Economica
2005 : AUG, VOL. 72:287, p. 397-411 |
| Index terms: | child workers education innovation welfare |
| Language: | eng |
| Abstract: | This article discusses the interaction between technological innovation, investment in human capital and child labour. In the first stage firms decide on innovation, then households decide on education. In equilibrium the presence of ineffective child labour depends on parameters related to technology, parent's altruism and the diffusion of firms' property. Child labour is due either to firms' reluctance to innovate or to households' unwilligness to educate, or both. Compulsory schooling laws or a ban on child labour can be welfare-reducing, while a subsidy for innovation can eliminate child labour and increase welfare. |
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