Evidence on substitutability of adult and child labour

Abstract

Whether child labour displaces adult labour, giving rise to unemployment, is a matter of their substitutability in production. Using a flexible form production function fitted to data on Egypt's economy, we generate Hicks elasticities of complementarity, own and cross‐price elasticities, as well as simulate employment effects on adult labour as a result of changing the fixed quantity of labour in compliance with the international call to end child labour. Adult males appear to be complementary with, and adult females substitutes for child labour, although the employment effects of banning child labour are inconclusive.

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