Question

The International Labour Organization (ILO) estimates that in 2004, 126 million children worldwide performed work that was hazardous to their physical or educational development, with the highest concentrations in the poorest countries. However, the number of children performing hazardous work fell by 26 percent from 2002 to 2006. If children are working, we must assume that they (or their parents) believe they will be better off. How do the income and substitution effects relate to the issue of child labor and the recent decline of child labor worldwide?

Answer 1

The decline in Child labour in a developing nation is explained below :

1) Due to income effect, whenever a nation experiences rapid economic growth, there is decline in child labour.

2) Applicability of new technologies have contributed to further reduce child labour in developing nations.

3) Globalisation is considered one of the most important factor which has contributed to a nation's economic growth resulting in lower child labour.

4) Child labour has observed a decline because certain industries have substituted the mode of labour by hiring new technology, high optimization of other resources etc

5) An increase in international trades and reduction in poverty defines a reduction in child labour.

6) Child time allocation to education, social activities has increased causing a reduce in child working as labour in paddy fields in poor countries.