Child labor

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Instead of aiming at abolishing child labor, should policy makers look for alternativeapproaches. Parents feel compelled to send their children to work as a means of survival.Although not immediately apparent, a simple ban on child labor does not prove effectivein ridding of it. Therefore, integrative efforts should be made in conjunction with

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eliminating child labor. Instead of waiting for the natural economic growth to slowlyremove child labor, the government and policy makers may intervene by offeringincentives. Integrative policies include improved schooling, trade union involvement,school meals, and income subsidies. To find alternative means of addressing child laborwhere it prevails on a larger scale after establishing it as the perpetrator of such maladiesas reduced adult wages, adult unemployment, and negative impact on human capital.

Child Labor is a prevalent problem throughout the world especially in developingcountries. Children work for a variety of reasons, the most important being poverty andthe induced pressure upon them to escape from this plight. Though children are not wellpaid, they still serve as major contributors to family income in developing countries.Schooling problems also contribute to child labor, whether it be the inaccessibility ofschools or the lack of quality education which spurs parents to enter their children inmore profitable pursuits. Traditional factors such as rigid cultural and social roles incertain countries further limit educational attainment and increase child labor.

Denying the right of education and the possibility to achieve complete physicaland psychological development, child labor serves as a source of exploitation and abuse.In my definition of child labor throughout this paper, a child qualifies as a laborer if thechild performs economic activity on a regular basis that provides output for the market.

Since numbers are often underreported, determining the actual prevalence of childlabor exhibits problems. The International Labour Organization (ILO) estimated in 15that around 50 million children between the ages of five and fourteen years old work fora salary or wage in the world.1 10 million of those counted worked full time. Certaingeographical areas demonstrate higher child participation rates than others. The abovefigure relates only to full-time child labor, estimates would rise if part-time child laborwere included. For instance in 10, Europe shows a .10% rate, Latin America andCaribbean with 11.%, Asia follows with a 15.1% rate and Africa with the highest rateof 7.87%. Many of these children work in dangerous occupations, such as agricultureor factories. Over 70% of children work in agriculture, hunting, forestry, and fishing. Thesecond highest sector in terms of the percentage of child workers is manufacturing with8.%. Wholesale and retail trade, restaurants and hotels have the same percentage asmanufacturing.

However, the informal economy conceals many unaccounted child laborers. Fromsmall businesses to micro-enterprises, unsafe working conditions, low productivity,minimal returns to investment and low to no wages all characterize informal work.The ILO reports of the informal economy as The expanding and increasingly diversegroup of workers and enterprises in both the rural and urban areas operatinginformally,they share one important characteristic they are not recognized orprotected under the legal and regulatory frameworks. Informal workers andentrepreneurs are characterized by a high degree of vulnerability.

This type of economy accounts for the most child laborers, especially due to itsability to spillover into other economic sectors. For instance, an organized commercialagricultural estate may form an agreement for some production by a smaller family farmor a multinational corporation may contract materials from small workshops or familieswho work at home. Overall, child labor does not help alleviate poverty in developingcountries but actually helps perpetuate it.

As we have seen a factor causing child labor is low wages and low adult wagesserve as a factor in perpetuating poverty. Before exploring the causal link of child laborand adult wage reduction, one must first explore the reasons for children in the labormarket instead of adults. On the demand side, employers assert that children possessproductivity traits that adults lack, such as nimble fingers. On the supply side, the parentmay believe that due to lack of adult jobs or low adult wages in the household, child laborserves as the only option. Why do employers demand child labor? The International Labour Organization reports,Employers may prefer children because they are paid less than adults on a daily rate (butnot piece-work) basis, because of beliefs about their suitability for certain jobs, andbecause more work can be extracted from them owing to their greater docility and lack ofawareness of, and ability to claim, their rights.4

Due to the ready supply and increasing demand of child labor, adults experiencethe detrimental effects on their wages. Since adults and children are substitutes in thelabor market, child labor, when used, increases the supply of labor. As a result, this placespressure on the wages. As the supply of labor increases due to parents sending theirchildren to work in order to help make ends meet, it reduces the wages of adults alreadyemployed.

The adult unemployment rate and child labor have a causal link in that a rise inchild labor increases the incidence of adult unemployment.5 It is but fair to assume that inthe same measure as females replaced men as factory workers, so child labor, if notrestricted, will crowd a proportionate number of adults out of employment. The generalconception holds that more children equate more working hands. Thus, more workingchildren generate greater income for the family. Contrarily, studies on unemploymentshow that the number of unemployed adults in India nearly equals the number of childlaborers there.

Child labor poses long run consequences that actually help perpetuate poverty bydiminishing human capital. Economists refer to this negative effect as the child labor trap.An increase in child labor causes a decline in human capital on the working children.Hence, an inverse relation exists between child labor and a child's future productivity inlife.6 Children who work long days possess little time for education and as a result,exhibit low productivity as an adult. Investing in human capital contains growingimportance for a country's economic growth. When parents cannot invest in their child'seducation, it then affects the next generation.

At the very least, child labor for those under 14 years of age disrupts theireducation or even inhibits education altogether.7 Children, who begin working at ayounger age, achieve a lower level of education, which impacts the child's future incomegeneration capabilities and welfare

Since the early 1th and late 0th centuries, the U.S. has progressed towardeliminating child labor. The extent to which a society protects childrens rights measuresthe societys progression. As people became more aware of childrens needs, they placedmore emphasis on education. To a certain extent, child labor in the U.S. still exists insectors of the economy, mainly among immigrants. In comparison to child labor in thelate 1800s to early 100s the prevalence of child labor and its conditions have improveddrastically. The U.S. case study proves that child labor laws alone do not solve theproblem; integrative efforts such as education, stipends, and trade unions must also beused.8

School represents the most important means of drawing children away from thelabor market. Studies have correlated low enrollment with increased rates of childemployment. School provides children with guidance and the opportunity to understandtheir role in society. Therefore, many insist on immediately abolishing child labor indeveloping countries and requiring children to go to school. Yet this approach isunfeasible for a number of reasons. First, children will not attend these schools without aneconomic change in their condition. Schools must make it worthwhile for children toattend in order to make up for lost earnings. One necessary provision is that these schoolsbe free. Another possibility is that these schools serve food supplements. Parents mightview this nutrition as valuable and therefore keep their children in school. The quality ofeducation can also be improved so that schooling is considered an important factor in thefuture success of a child.10 Only after the introduction of such substitutes will schoolattendance increase.

Policy must also be phased in relation to the level of development and the extentof child labor currently being used in an economy. Just as current trade agreements allowfor differential and preferential treatment for developing countries, so should laborstandards clauses. Standards should be seen as escalator as development increases sodo the labour standards required in a particular economy. There are basic minimumstandards which are applicable to all economies.

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