In many developing countries, a modern sector coexists with a traditional, informal, sector often intensive in child labor. In such a setting, when parents care about both the number and wellbeing of offsping, but also attach an economic value to children, there is a positive association between...

Exogenous growth models imply that, if human capital formation is endogenous, there is a negative relationship between human capital and growth. This prediction is tested against the alternative of the Lucas- Uzawa model which posits an increasing relationship between growth and the ratio of...