defend their monopoly position and prevent innovation and entry of high-quality competitors. This requires that the incumbent … quality upgrade related to innovation. Consistently with our empirical findings, the model delivers a negative association …

We study the interactions between technological innovation, investment in human capital and child labor. In our setting … firms decide on innovation, then households decide on education. In equilibrium the presence of inefficient child labor … on child labor are welfare reducing, while a subsidy to innovation is the right tool to eliminate child labor and …