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Introduction
Child Labour
Focused Areas
Who are child labourers andhow many?
What is the dilemma?What is the solution?Conclusion
IEG 7th March, 2008 , Praveen kuamr
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Child Labour
ILO :distinguishes child labour from economically active Children by asserting
that a child above the age of 12 Who does light ,part time work, that is not
hazardous may be economically active but is not to be counted as a child labourer
India:Law
Child Labour (Prohibition and Regulation) Act 1986,
seeks to prohibit employment of children below 14 years in hazardous
occupations and processes and regulates the working conditions in otheremployments. Recently, Government has also decided to include children
working as domestic servants and those working in dhabas/roadside eateries
/motels etc. in the category of hazardous occupations.
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Child labour
Child labour in figures (global estimates 2002) = knowledge
National surveys (50)
( 1998-2002)
Rapid assessments&
Baseline studies (100)
(2000-2003)
246 million child labourers
Worldwide
( age 5-17)
146 million childrenAged 6-11
Out of school
283 million children
Aged 12-17 out of school
Majority boys
Majority girls
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4NOs. industry (India) %share
1 Pan, Bidi & Cigarettes 18
2 Construction 15
3 Domestic workers* 12
4 Spinning/ weaving 11
5 Brick-kilns, tiles 9.5
6 Dhabas/ Restaurants/ Hotels/ Motels* 7.7
7 Auto-workshop, vehicle repairs 7
8 Gem-cutting, Jewellery 6.2
9 Carpet-making 5.8
10 Ceramic 4.1
11 Agarbati, Dhoop & Detergent making 2.7
12 Others 2
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The global experiences..
Britain : Roberts Peel's factories act 1802
Incidence of child labour remained very high
U.S experience: child labor control act 1837
Faster decline in child labour between 1880-1910.
What do other studies say.?
Moehling 1999: law had very little effect on the incidence of
child labour in Britain
Should the govt intervene ?
There is need for formal empirical analysis of the effect of the law on child
labour , the broad evidence suggests that the effect may not be what people take
it to be at face value . Indeed it can be shown that when it comes to the use of a
fine for employing children the effect can be the opposite of what we may expect .
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Should the firms employing child be fined?
A house hold sends its children to work in
order to escape poverty and starvation , now
There is a new law whereby firms are fined
whenever they are caught using child
clearly this will cause the wage for child labourto drop this is because children are now less
input for firms. But this in turn will mean
children will have to work even harder to be
able to earn the target income (subsistence-
level) Empirically , consider a lobour marketin which each household consists one adult and
several children in a labour market , adults and
children are perfect substitutes. The adult
always supplies labour perfectly inelastically ,
where as children work only to the extent of
subsistence.
6IPEC
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Children will work only when adult wagerate is below s. let w be the adult wage in
the economy .
if w>s no child labour evolves.
What happens when govt comes into
picture.?Govt imposes a fine =D rupees .
Let p be the probability for a firm to be
caught so every time the firm will be fined
= pD( punishment cost).
Let Wc be the child wage rate firm willemploy a child only when Wc
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Consider the case when govt tries to raise the fine .
This will mean that employing children will be more
expensive for the firms , because with each childthere is risk of being caught and having to pay the
larger fine to the govt. so as the penalty rises the
market will make sure that child wage will drop.
And once the child wage drops each household will
be forced to send more children to work to meet the
subsistence consumption target, so herein lies the
essence of Pathology ,an increased fine for employin
children could raise the child labour
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Concluding remarks:
Which agency to control ?
National government
International bodies
Or
Ordinary consumers
But again Inadequate access
Northern protectionism.
Direct or indirect approach .
Close analysis required .
Sources : ILO and Planning Commission Of India
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