ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Trade-theoretic Analysis

Child Labour and Social Exclusion

A four-good, four-factor general equilibrium trade-theoretic model is utilised that incorporates social exclusion, consumption disaggregation and child labour. In this framework, trickle-down economics fails and under very plausible conditions, socially excluded families and their children are impoverished by capital accumulation. Policies such as a ban on child labour have differential effects on the economy. Specifically, a ban on child labour in the traded goods sector necessarily improves the welfare of the socially excluded families and their children. However, a ban on child labour in the non-traded goods sector has ambiguous implications for the welfare of the excluded group. Thus, this paper highlights the importance of disaggregation and social exclusion for policymaking.

It is family and community poverty and social exclusion, which exist within countries across all national income groupings, that are a key driver of child labour.

— ILO 2017

A study by the International Labour Organization (ILO 2017) estimates that in 2016, roughly 152 million children between the ages of 5 and 17 were engaged in child labour.1 Approximately 50% of these children were exposed to hazardous work. While the fight against child labour has moved in the right direction,the ILO study suggests that the rate of progress has been decreasing.

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Updated On : 4th Jan, 2021

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