Factor of Child Labor

   Causes of global child labor include poverty, limited access to education and child labor prohibitions, globalized economy, and international free trade (uiowa.edu/laborctr/child_labor). Edmonds & Pavcnik (2005) said that child labor is a symptom of poverty, and low incomes are the fundamental driving force behind the prevalence of worldwide child labor. More than one-
fourth of the world's people live in extreme poverty. Unemployment levels are high in Africa, Asia, and Latin America, and many poor families rely upon child labor to obtain basic necessities (uiowa.edu/laborctr/child_labor). Edmonds (2005) found that child labor declined whenever households improved enough to move out of poverty, which suggests a role for economic growth in the reduction of child labor.

    Often, access to compulsory, free education is limited, and in 2006 approximately 75 million children were not in school. Existing laws prohibiting child labor are often violated or
difficult to monitor when extensive subcontracting intentionally hides the use of child labor.
As the global economy intensifies and multinational corporations expand across borders, competition for jobs, investment, and industry may interfere with child labor reform since corporations seek low labor costs by resisting international standards. International free trade rules may diminish consideration of child labor rights in the competition for preferential trade and federal contracts. In addition, the effects of poverty in developing countries are often exacerbated by the large interest payments on development loans that often force governments to cut education, health, and other public programs, which further harms children and increases pressure to become child laborers (uiowa.edu/laborctr/child_labor).

    Banerjee & Nag (2013) said the prevalence of child labor is a result of an emerging market economy. Globalization policies such as agriculture trade liberalization to attract foreign investment have negative effects on child labor in developing economies. They express concern that reductions in child labor increase social welfare cost and negatively affect families where children are no longer allowed to work (Banerjee & Nag, 2013).

    Basu & Tzannatos (2003) said that the problem of child labor is no a longer national or regional concern, but is now an international and global concern. Therefore, policies for the continued reduction of this problem require proper theoretical understandings of this global phenomenon. They state that well-meaning but poorly designed interventions may end child labor, but exacerbate the poverty in which these children live.

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