Child Labor, Fertility and Economic Growth

30 Pages Posted: 1 Nov 2001

See all articles by Moshe Hazan

Moshe Hazan

Tel Aviv University - Eitan Berglas School of Economics; Centre for Economic Policy Research (CEPR)

Byniamin Berdugo

Hebrew University of Jerusalem - Department of Statistics

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Abstract

This paper explores the evolution of child labor, fertility, and human capital in the process of development. In early stages of development the economy is in a development trap where child labor is abundant, fertility is high and output per capita is low. Technological progress, however, increases gradually the wage differential between parental and child labor, thereby inducing parents to substitute child education for child labor and reduce fertility. The economy takes-off to a sustained growth steady-state equilibrium where child labor is abolished and fertility is low. Prohibition of child labor expedites the transition process and generates Pareto dominating outcome.

Keywords: Child labor, Fertility, Growth

JEL Classification: J13, J20, O11, O40

Suggested Citation

Hazan, Moshe and Berdugo, Byniamin, Child Labor, Fertility and Economic Growth. Available at SSRN: https://ssrn.com/abstract=288943 or http://dx.doi.org/10.2139/ssrn.288943

Moshe Hazan (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 6997801
Israel

HOME PAGE: http://www.moshehazan.sites.tau.ac.il/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Byniamin Berdugo

Hebrew University of Jerusalem - Department of Statistics ( email )

Mount Scopus
Jerusalem, 91904
Israel

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