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THE WORLD BANK ECONOMIC REVIEW, VOL. 17, NO. 2, 147-173
© 2003 The International Bank for Reconstruction and Development / THE WORLD BANK

The Global Child Labor Problem: What Do We Know and What Can We Do?

Kaushik Basu and Zafiris Tzannatos

Kaushik Basu is Professor of Economics, C. Marks Professor of International Studies, and Director of the Program on Comparative Economic Development, Department of Economics, Cornell University, Ithaca, New York; his e-mail address is kb40{at}cornell.edu. Zafiris Tzannatos was (at the time of preparation of this work) Adviser to the Managing Director for Human Development at the World Bank and is currently Professor of Economics and Chairman of the Economics Department, American University of Beirut, Lebanon; his e-mail address is zafiris.tzannatos{at}aub.edu.lb.

Abstract

The problem of child labor has moved from a matter of regional and national concern to one of international debate and possible global persuasion and policy intervention. In crafting policy for mitigating this enormous problem of our times, it is important to start with a proper theoretical and empirical understanding of the phenomenon. What gives rise to child labor, and what are its consequences? What interventions might end child labor without hurting children? A well-meaning but poorly designed policy can exacerbate the poverty in which these laboring children live, even leading to starvation. The article surveys the large and rapidly growing literature on this subject, focusing mainly on the new literature based on modern economic theory and econometrics. It also looks at some of the broad policy implications of these new findings, with the objective of contributing to better informed discussion and policy design.


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