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Title:Child Labor and the Education of a Society PDF Logo
Authors:Bell, Clive
Gersbach, Hans
Issue Date:2001
Series/Report no.:IZA Discussion paper series 338
Abstract:We examine economic growth, inequality and education when the wellspring of growth is the formation of human capital through a combination of the quality of child-rearing and formal schooling. The existence of multiple steady states is established, including a poverty trap, wherein children work full-time and no human capital accumulation takes place, with continuous growth at an asymptotically steady rate as an alternative. We show that a society can escape from the poverty trap into a condition of continuous growth through a program of taxes and transfers. Temporary inequality is a necessary condition to escape in finite time, but long-run inequalities are avoidable provided sufficiently heavy, but temporary taxes can be imposed on the better-off. Programs aiming simply at high attendance rates in the present can be strongly non-optimal.
Subjects:Child labor
growth and inequality
education
human capital
redistributive policies
poverty traps
JEL:H2
I2
O1
O41
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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