TY  - RPRT
        AU  - Bell, Clive
AU  - Gersbach, Hans
        TI  - Child Labor and the Education of a Society
        PY  - 2001/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 338
        UR  - https://www.iza.org/index.php/publications/dp338
        AB  - 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.
        KW  - growth and inequality
KW  - education
KW  - human capital
KW  - Child labor
KW  - redistributive policies
KW  - poverty traps
        ER  -