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Child Labor and the International Policy Debate - The Education/Child Labor Trade-Off and the Consequences of Trade Sanctions

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  • Grote, Ulrike
  • Basu, Arnab K.
  • Weinhold, Diana

Abstract

This paper provides an overview of the current academic and public debate on child labor. There is growing impetus to impose international minimum labor standards banning child labor. However, this paper argues that while partial bans such as trade restrictions, voluntary codes of conduct and labeling schemes may improve the working conditions of a small percentage of child laborers in developing countries, this approach might ultimately do more harm than good. Total or partial bans on child labor have the potential to lower household welfare under realistic assumptions, as will be shown in a simple model. We argue that the underlying economic determinants of child labor supply must be addressed directly, taking into account the interrelationship between the market for schooling and that for child labor. The paper emphasizes that, with limited resources available for combating child labor, it is important to carefully judge which policies will have the greatest impact. However, as our model has also shown, under certain circumstances, major causes for the emergence and existence of child labor may be credit market imperfections and the high costs of education, so that resources should be allocated accordingly.

Suggested Citation

  • Grote, Ulrike & Basu, Arnab K. & Weinhold, Diana, 1998. "Child Labor and the International Policy Debate - The Education/Child Labor Trade-Off and the Consequences of Trade Sanctions," Discussion Papers 279717, University of Bonn, Center for Development Research (ZEF).
  • Handle: RePEc:ags:ubzefd:279717
    DOI: 10.22004/ag.econ.279717
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    Cited by:

    1. Neumayer, Eric & de Soysa, Indra, 2005. "Trade Openness, Foreign Direct Investment and Child Labor," World Development, Elsevier, vol. 33(1), pages 43-63, January.
    2. Arnab K. Basu & Nancy H. Chau & Ulrike Grote, 2006. "Guaranteed Manufactured without Child Labor: The Economics of Consumer Boycotts, Social Labeling and Trade Sanctions," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 466-491, August.
    3. Leonardo Becchetti & Giovanni Trovato, 2005. "The Determinants of Child Labour: The Role of Primary Product Specialization," LABOUR, CEIS, vol. 19(2), pages 237-271, June.
    4. Chakrabarty, Sayan & Grote, Ulrike & Lüchters, Guido, 2006. "The Trade-Off Between Child Labor and Schooling: Influence of Social Labeling NGOs in Nepal," MPRA Paper 4096, University Library of Munich, Germany.

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