Child labour in the presence of agricultural dualism: possible cures

The paper using a three-sector general equilibrium model with agricultural dualism and child labour shows that any fiscal measures designed to benefit backward agriculture cannot cure the problem of child labour in a developing economy although they raise the non-child labour income of the poor households. A policy of capital led growth through inflows of foreign capital, on the contrary, will be able to alleviate the problem by encouraging advanced agriculture and lowering the demand for child labour. The analysis questions the desirability of assisting backward agriculture and advocates in favour of a liberalized investment policy for controlling the menace of child labour in the society.