According to one of the latest reports released by UNICEF in June 2006, more than 190.7 million children aged 5-14 years are currently engaged in child labour. While the Asian and Pacific regions harbour the largest absolute number of child workers (127.3 million, 19%), it is Sub-Saharan Africa which has the highest participation rate (29%, 48 million). Many of these children are forced into debt bondage, are misused as soldiers in armed conflicts or trafficked into prostitution. Other estimates from the ILO state that in 1995 there were up to 120 million children under the age of 15 carrying out paid work . This figure, it claims, would rise to 250 million if part-time work and household activities were to be included as ‘child labour’. Obviously the estimates can vary widely depending on the data used and the definition of ‘work’ and ‘child’ but the ILO Convention No. 138 of 1973 seems to be a reasonable benchmark. It sets the minimum age for the admission to employment or work to at least 15 years. Children below that age are consequently regarded as economically active if the work they perform prevents them from a proper school attendance.
This essay aims to describe and evaluate the different policies proposed to curb child labour.
Table of Contents
1. INTRODUCTION
2. PROPOSED POLICIES TO ERADICATE CHILD LABOUR
2.1 DETERMINANTS OF CHILD LABOUR
2.2 SEVEN POLICIES TO ERADICATE CHILD LABOUR
2.2.1 Population policies
2.2.2 Development of credit markets
2.2.3 Labour market reforms
2.2.4 Trade liberalization and economic integration
2.2.5 Trade sanctions
2.2.6 Total ban on child labour
2.2.7 Compulsory school attendance
3. EVALUATION AND CONCLUDING REMARKS
Research Objectives and Key Topics
This essay aims to analyze and evaluate various public policy interventions designed to eliminate child labour globally. By examining both the socio-economic determinants of child labour and the theoretical underpinnings of different policy approaches, the author seeks to determine which strategies are most effective in addressing the root causes of child exploitation while promoting long-term human welfare.
- Determinants of child labour (supply and demand factors)
- Comparative effectiveness of policy interventions
- The role of credit markets and schooling
- Consequences of trade sanctions vs. labour reforms
- Long-term socio-economic impact of educating girls
Excerpt from the Book
2.2.2 Development of credit markets
When indigent households decide whether to provide their youngest with schooling, a clear trade-off between current income from child labour and future earnings arises. Even assuming that individual returns on education are equal to the social optimum and that parents are willing to send their children to school because they realize the high value-added it can provide, the required sacrifice might be too high for the poorest. As they usually face a very uncertain future they tend to have very high discount rates for education, reducing its pecuniary return even more. Papers based on comprehensive intertemporal models from Baland & Robinson (2000) as well as from Jafarey & Lahiri (2002) conclude that working credit markets which allow for borrowing at reasonable terms play an important role in the eradication of child labour. Baland and Robinson show that imperfect capital markets deprive families lacking collateral of borrowing and therefore of choosing the optimal amount of education both in the case of parental altruism (parents fully internalize negative effects of child labour through their bequest) and mutual altruism (children commit themselves to repay their parents’ debt by transfers when they grow up). Nevertheless, the fact that a child cannot commit itself credibly to a repayment of debts might discourage parents from promoting child education even if capital markets are perfect. Considering three credit market scenarios (perfect credit market, purely domestic credit market, quantitative constraints on borrowing) Jafarey and Lahiri predict that education levels are highest in the first and lowest in the third case. Further, the possibility of borrowing is recognized to alleviate significantly the fatal consequences of trade sanctions.
Summary of Chapters
1. INTRODUCTION: Provides an overview of the global prevalence of child labour, referencing recent reports and the economic implications for both underdeveloped and richer nations.
2. PROPOSED POLICIES TO ERADICATE CHILD LABOUR: Outlines the primary determinants of child labour and characterizes seven distinct policy approaches ranging from population control to compulsory schooling.
3. EVALUATION AND CONCLUDING REMARKS: Synthesizes the findings to argue that tailor-made, intra-national interventions—specifically those focusing on education and credit markets—are superior to punitive international sanctions.
Keywords
Child labour, Development Economics, Credit Markets, Trade Liberalization, Trade Sanctions, ILO Convention, Education, Socio-economic development, Labour market equilibrium, Poverty, Human capital, Population policies, School attendance, Global trade, Economic policy.
Frequently Asked Questions
What is the primary focus of this essay?
This essay examines the various public policies proposed to eradicate child labour and evaluates their effectiveness in light of economic theories and development realities.
What are the central themes covered?
The central themes include the supply-side determinants of child labour (such as household income and fertility), the role of capital markets, the impact of international trade standards, and the importance of education.
What is the core research question?
The research seeks to identify which policy interventions are most likely to effectively reduce child labour without harming the most vulnerable segments of the population.
What methodological approach does the author use?
The author employs a theoretical and qualitative review of existing economic models and literature to contrast different policy instruments, such as bans, market reforms, and educational initiatives.
What is discussed in the main section of the paper?
The main section categorizes policy interventions into three levels: intra-national (e.g., labour laws), supra-national (e.g., international standards), and extra-national (e.g., import bans), followed by a detailed review of seven specific policy types.
Which keywords best characterize this work?
Key terms include child labour, credit markets, trade liberalization, education, labour market equilibrium, and socio-economic development.
Why does the author argue that trade sanctions are often ineffective?
The author suggests that trade sanctions often serve protectionist interests and, by forcing children out of export sectors, may drive them into more dangerous, unregulated work like prostitution.
What does the author propose as the most effective long-term solution?
The author advocates for a policy mix that prioritizes improving credit markets for the poor and ensuring compulsory school attendance, noting that educating girls is particularly crucial for long-term economic development.
- Quote paper
- Arturo Minet (Author), 2007, Describe the different public policies proposed to eradicate child labour., Munich, GRIN Verlag, https://www.grin.com/document/77368
