Document Type

Journal Article


This paper attempts to examine the phenomenon of child labour in India by conducting a preliminary search for the factors which affect demand and supply of child labour. The incidence of child labour is firstly examined with respect to the socio economic characteristics including demographic, educational and economic poverty variables. Factor analysis is then conducted to identify patterns of these variables with the incidence of child labour for Indian states using Census data. These possible relationships are formally modelled in an overlapping generations framework which derives two postulated models. The models are estimated using Kmenta's pooled method which combines variations due to time and state specific factors. These results clearly indicate the presence of vicious and virtuous spirals consisting of the above factors for different states. The supply factors appear to dominate and their roles require further indepth examination.