Bellettini, Giorgio; Ceroni, Carlotta Berti; Ottaviano, … - Fondazione ENI Enrico Mattei (FEEM) - 2003
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 …