Peer-reviewed article
Impact of Economic Development on Child Labour
Palak Kakkar ·
Summary
Written by AI, not yet AICS's view · claude-haiku-4-5-20251001This study examines how economic development affects child labour in India and Punjab using data from 1971 to 2014. Researchers collected information on child labour levels over time and compared this with economic indicators like GDP, agricultural and industrial production, and exports. The findings suggest that economic growth, particularly increases in GDP and production, is associated with lower rates of child labour.
Key points
- Economic indicators in India and Punjab showed significant growth, especially between 2001–2014
- Regression analysis found that increases in GDP are associated with declines in child labour incidence
- Growth in agricultural and industrial production correlates with lower child labour
- Increases in exports are linked to reductions in child labour
- India remains a nation with a large prevalence of child labour despite economic growth
Limitations
The study is based on secondary data and regression analysis, which can show associations but cannot establish causation or explain the mechanisms through which economic growth reduces child labour. The analysis does not account for other factors such as education policy, enforcement of labour laws, or social interventions that may independently affect child labour rates.
Abstract
The problem of child labour exists across the globe and our India is one among the nations of being a large employer of child labour. India has been experiencing a high growth rate in many economic indicators in the last few decades. To study the impact of economic development on child labour, secondary data on the volume of child labour was collected decadal wise and time-series data on different indicators of economic development were collected for India and Punjab. The study revealed that economic indicators registered significant growth during 1971–2014, particularly during 2001–2014. The results of regression analysis indicated that an increase in GDP with an increase in agricultural and industrial production and an increase in exports of India and Punjab would led to a decline in the incidence of child labour.