Wage traps as a cause of illiteracy, child labor, and extreme poverty

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Wage Traps as a Cause of Illiteracy, Child Labor, and Extreme Poverty

When labor incomes approach subsistence levels, the labor supply curve slopes outward, because the fight for survival mandates households to look for longer work hours in response to falling wage rates. We explore conditions under which near-subsistence scenarios may imply wage traps, labor market failures that can be the cause of undernourishment, illiteracy, and child labor. After stating gen...

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ژورنال

عنوان ژورنال: Research in Economics

سال: 2011

ISSN: 1090-9443

DOI: 10.1016/j.rie.2010.10.003