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Does globalization reduce child labor?

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  • Krisztina Kis-Katos

Abstract

This paper considers the effects of trade liberalization on child labor that arises out of subsistence needs. It argues that favorable income effects are most likely to reduce the need for child labor in the South, even when export goods have a necessity character. However, in very poor economies, aggregate hours of child labor can also increase as a result of more open trade. Although the poorest families are the ones who benefit the most from trade in a Heckscher - Ohlin setting, their income gains might not be high enough to make them withdraw their children from work, while adverse income effects can raise the incidence of child labor among the less poor. The paper provides empirical support for the argument by finding that in a country panel, increases in trade openness are associated with significantly smaller reductions in child labor among the poorest food exporters than among food exporters on average.

Suggested Citation

  • Krisztina Kis-Katos, 2007. "Does globalization reduce child labor?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(1), pages 71-92.
  • Handle: RePEc:taf:jitecd:v:16:y:2007:i:1:p:71-92
    DOI: 10.1080/09638190601165558
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    Citations

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    Cited by:

    1. Ozcan Dagdemir & Hakan Acaroglu, 2010. "The effects of globalization on child labor in developing countries," Business and Economic Horizons (BEH), Prague Development Center, vol. 2(2), pages 37-47, July.
    2. Krisztina Kis-Katos & Robert Sparrow, 2011. "Child Labor and Trade Liberalization in Indonesia," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 722-749.
    3. Muhammad Nawaz & Muhammad Nasir & Amanat Ali & Waheed Chaudhry, 2011. "Trade Liberalization and Child Labor: A Case Study of Pakistan," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 361-376, December.
    4. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.

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