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Oxford Economic Papers Advance Access published online on June 22, 2004
Oxford Economic Papers, doi:10.1093/oep/gpf056
Copyright © 2004 Oxford University Press.
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Original Papers

Relative wage, child labor, and human capital

C. Simon Fan 1

1 Department of Economics, Lingnan University, Tuen Mun, Hong Kong


  Abstract

This paper analyses child labor and children's human capital formation in response to the changes of the relative wage/productivity between child labor and adult labor. It implies that because children's labor market participation raises the financial resources spent on their education, a small increase in child labor may enhance children's human capital. It also shows that in a poor economy, the laws that punish or partially deter child labor may result in children working more and accumulating less human capital.


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