Child labor : cause, consequence, and cure, with remarks on International Labor Standards
AbstractAt least 120 million of the world's children aged 5 to 14 worked full-time in 1995, most of them under hazardous, unhygienic conditions, for more than 10 hours a day. This is an old problem worldwide but particularly so in Third World countries in recent decades. What has changed, with globalization, is our awareness of these child laborers. (The International Labor Organization distinguishes between"child work,"which could include light household chores and could have some learning value, and"child labor,"a pejorative phrase.) By bringing together the main theoretical ideas, the author hopes to encourage both more theoretical research and empirical work with a better theoretical foundation. Among other things, the author observes that: a) The problem is most serious in Africa, where the child-labor participation rate is 26.2 percent. The rate is 12.8 percent in Asia. But since 1950, the trend is a decline in that participation rate worldwide. For most Latin American countries, the decline is notable but less marked than in Asia. In large parts of Africa, including Ethiopia, the problem has been extremely persistent, but even there the trend is downward. b) Child labor has not always been considered evil, and there is no consensus on why it began to decline. In some (not all) countries legislative acts declared it illegal, in some there were rules about compulsory education, and increasing prosperity generally made families less likely to experience poverty if their children weren't working. c) Mandating compulsory education is regarded as more effective than outlawing child labor, because attendance at school is easier to monitor, but some experts believe economic progress is the answer to the problem. The justification for many interventions is that the state is more concerned about the well-being of children than parents are; the author believes such an assumption to be wrong when child labor occurs as a mass phenomenon rather than as isolated abuse. The author argues that, in some economies, the market for labor may exhibit multiple equilibria, with one equilibrium having low adult wage and a high incidence of child labor and another equilibrium exhibiting high adult wage and no child labor. The model is used to provide a framework for analyzing the role of international labor standards.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2027.
Date of creation: 31 Dec 1998
Date of revision:
Labor Standards; Children and Youth; Street Children; Labor Policies; Environmental Economics&Policies; Street Children; Children and Youth; Youth and Governance; Labor Standards; Educational Policy and Planning;
Other versions of this item:
- Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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