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A spokesman for the Royal Economic Society said that the research offered "a new perspective on the worst forms of child labour and policies to reduce their occurrence. It focuses on curing the symptoms and may fail to address the causes of harmful forms of child labour, of which poverty is the prime component''.

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"The market for the worst forms of child labour helps to keep wages in the market for the 'good' forms of child labour sufficiently high to help poor families finance their children's education."

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The study says that the new convention will do more harm than good in poor countries.

"The solution we favour is to combine legislative enforcement of a ban with practical action to help tackle poverty and improve education. Stopping child labour is also about human rights. It's no good saying that we must get children into school if we then do nothing to get them there."

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Its horrors were highlighted by Charles Dickens and countless campaigners since, but child labour – including prostitution, mining, deep-sea fishing and drug-trafficking - should not be banned in poor countries, according to a study by the Royal Economic Society.

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The research, by two leading professors of economics, says that making the worst forms of child labour illegal is misguided, does more harm than good, and can damage the economy and the living standards of many families in developing nations.