The intriguing relation between adult minimum wage and child labour

Because most parents send their children to work when compelled by poverty, one would expect a rise in adult wage to lower child labour. However. if t he rise in wage is achieved by a minimum wage law, its impact can be intrig uing. It can, for instance, cause some adults to be unemployed and send the ir children to work, which in turn displaces more adult labour and sends mo re children to work. The paper solves this process and incidence of child l abour. It shows that, for appropriate parametric configurations, child labo ur may fall or rise as the adult minimum wage is raised.