ABSTRACT
The existence and persistence of child labor, variously defined, remains an issue of great concern and contention among social and religious activists, entrepreneurs, politicians, and scholars alike, given the large number of children still engaged worldwide in economic activities, especially in the lower-income countries. The International Labour Organisation has been long in the forefront of efforts to abolish child labor. This chapter addresses the critically important question as to whether or not changes designed to rid society of child labor can be expected to increase unit production costs, thereby impairing the competitive position of affected economies. It outlines the implications of introducing alternative, more realistic behavioral assumptions for our understanding of interventions against the use of child labor. The conventional wisdom predicts that shifting from child to adult labor increases unit production costs. Eliminating child labor requires that firms and governments invest in higher-wage and more productive economic regimes.
