ECON 6280 Lecture Notes - Lecture 9: Esther Duflo, Suharto, Child Labour
Document Summary
Econ 6280 class 9: education and child labor. There is a strong correlation between education and per capita income (both at the country level and at the individual level) Returns on investment: indiv. (better job and higher wages), country (economic growth, higher welfare) For education to have effect on society, you need good labor market. Higher returns to education in rich countries (quality) Parents: income (school fees, tuition, uniforms, bribe), child labor wage (opportunity cost), parental education (preferences, education and social capital are complementary factors), # of children (income constraint), sex of children, nutrition and health of children. Altruism vs. investments: expected returns to education (depends on the labor market, beliefs, information, credit markets) -> parents can weigh the future benefit of investment today on education. Private returns to education: % increase in wages for each extra year spent in school.
