Targeting Child Labor in Debt Bondage : Evidence, Theory, and Policy Implications

Despite recent multilateral efforts to single out child labor in debt bondage as one of the worst forms of child labor, several important questions have yet to be addressed: How pervasive is the phenomenon? Are there systematic correlations between the incidence of children in debt bondage and the economic, legislative, and financial development indicators of the economy? How does an understanding of these correlates affect the way national and international policy measures aimed at targeting this form of child labor are perceived? This article addresses each of these questions. The empirical findings suggest strong correlation between the likelihood of the incidence of child labor in debt bondage with the stage of development of an economy, the stage of financial development, and enforcement of core labor rights. Building on this evidence, the article presents a theoretical model that highlights the drawbacks and merits of a number of policies aimed at putting checks on child labor in debt bondage.

Bibliographic Details

Main Authors:	Basu, Arnab K., Chau, Nancy H.
Format:	Journal Article biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2003-05
Subjects:	ABSENCE OF CREDIT, ACCESS TO CREDIT, ACCESS TO FORMAL CREDIT, ACCOUNT, ACCOUNTING, AGRARIAN REFORMS, AGRICULTURAL ECONOMICS, ALTERNATIVE CREDIT, BANKS, BENEFICIARIES, BONDED LABOR, BORROWING, BUDGET CONSTRAINTS, CHECKS, CHILD LABOR, CHILD LABOUR, CONSUMPTION SMOOTHING, CORE LABOR STANDARDS, COST OF LOANS, CREDIT ACCESS, CREDIT AGENCIES, CREDIT AGENCY, CREDIT INCREASES, CREDIT MARKET, CREDIT MARKETS, CREDIT POLICY, CREDIT PROGRAM, CREDIT RATIONING, CREDIT SOURCE, CREDIT SOURCES, DEBT, DEBT OBLIGATIONS, DEBT REPAYMENT, DEBT REPAYMENTS, DEBTOR, DEBTS, DEMAND FOR CREDIT, DEMOCRACY, DEPOSIT, DEPOSIT MONEY BANKS, DEVELOPMENT ECONOMICS, DISPOSABLE INCOME, DUMMY VARIABLES, EARNINGS, ECONOMIC ACTIVITY, ECONOMIC CHARACTERISTICS, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC THEORY, ECONOMICS, EMPLOYERS, EMPLOYMENT, EMPLOYMENT OPPORTUNITIES, EXPENDITURES, EXPLOITATION, EXPORTER, EXPORTERS, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SYSTEMS, FORCED LABOUR, GROSS DOMESTIC PRODUCT, HAZARDOUS LABOR, HOUSEHOLD DEBT, HOUSEHOLD DEBTS, HOUSEHOLD INCOME, HOUSEHOLD SAVINGS, HOUSEHOLD WELFARE, HUMAN RIGHTS, ID, IMPLICIT INTEREST, INCIDENCE OF DEBT, INCOME, INCOME LEVEL, INCOME SHOCKS, INCOME VARIABILITY, INDEBTED HOUSEHOLDS, INEQUALITY, INFORMAL CREDIT, INSURANCE, INSURANCE MARKETS, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL LABOR STANDARDS, INTERNATIONAL TRADE, LABOR LAWS, LABOR MARKET, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR STANDARD, LABOR SUPPLY, LABORERS, LACK OF ACCESS, LAWS, LEGISLATION, LIQUIDATION, LOAN, LOAN PAYMENTS, LOAN REPAYMENT, MACROECONOMIC VARIABLES, MARKET CONDITIONS, MARKET DEVELOPMENT, MARKET RETURNS, MONEYLENDERS, OPPORTUNITY COST, OUTSTANDING DEBT, OUTSTANDING DEBTS, OUTSTANDING LOANS, PARTICIPATION CONSTRAINT, POLITICAL ECONOMY, PRINCIPAL-AGENT PROBLEM, PRINCIPAL-AGENT RELATIONSHIP, PRIVATE CREDIT, PRODUCTIVITY, REAL INCOME, RISK OF DEFAULT, RURAL LABOR, SAVINGS, SLAVERY, SMALL BUSINESS, SMALL BUSINESS LOANS, SOCIAL EXCLUSION, SOURCE OF CREDIT, SOURCES OF CREDIT, SOURCES OF CREDITS, SPOT MARKET, TRADE LAWS, UNION, UNIONS, USURY, WAGES,
Online Access:	http://documents.worldbank.org/curated/en/2003/05/17742203/targeting-child-labor-debt-bondage-evidence-theory-policy-implications http://hdl.handle.net/10986/17175
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