Economic growth: A panacea for child labor?

SummaryIn this paper, we test whether economic growth decreases child labor by bringing together data from the National Sample Survey of India and state-level macrodata to estimate a bivariate probit model of schooling and labor. Our results lead us to conclude that contrary to popular wisdom, growth actually increases rather than decreases child labor because it increases the demand for child workers. The level of state NDP, village wages, and household incomes are seen as the conduits through which growth influences the supply side of the child labor market.