now let's consider the economics of
now let's consider the economics of

child labor estimates vary and in any
child labor estimates vary and in any

case they're very rough but it's
case they're very rough but it's

possible that over two hundred million
possible that over two hundred million

children in the world are working today
children in the world are working today

some good news is that rates of child
some good news is that rates of child

labor are falling over time as you can
labor are falling over time as you can

see in this picture with the lines
see in this picture with the lines

representing the different major regions
representing the different major regions

of the world and the Falls are
of the world and the Falls are

substantial if we look at the line for
substantial if we look at the line for

instance for Africa at about 1950 the
instance for Africa at about 1950 the

rate of child labor in Africa was almost
rate of child labor in Africa was almost

40 percent but as of 2010 we can see
40 percent but as of 2010 we can see

that it's somewhat below 25 percent this
that it's somewhat below 25 percent this

picture very much shows that rates of
picture very much shows that rates of

child labor are declining with wealth
child labor are declining with wealth

that is once parents have enough money
that is once parents have enough money

and they are sure the family is able to
and they are sure the family is able to

eat they don't really want to send their
eat they don't really want to send their

children to work this is one of the many
children to work this is one of the many

good things about being a wealthier
good things about being a wealthier

society here's evidence from Vietnam
society here's evidence from Vietnam

showing again that child labor tends to
showing again that child labor tends to

decline with wealth from 1993 to 1997
decline with wealth from 1993 to 1997

Vietnam grew at a rate of about 6 to 7
Vietnam grew at a rate of about 6 to 7

percent over that same period child
percent over that same period child

labor went down by about 28 percent what
labor went down by about 28 percent what

else do we know about child labor some
else do we know about child labor some

of these may be a little surprising
of these may be a little surprising

first most children that work are
first most children that work are

employed by their parents second most of
employed by their parents second most of

these children work in agriculture third
these children work in agriculture third

most children that work actually also
most children that work actually also

attend school although by no means do
attend school although by no means do

they all and finally child labor is
they all and finally child labor is

highly responsive to negative income
highly responsive to negative income

shocks that is if you have a very poor
shocks that is if you have a very poor

family and something very bad happens to
family and something very bad happens to

them such as a bad harvest then may that
them such as a bad harvest then may that

they may send the children out to work
they may send the children out to work

one argument is that the best way out of
one argument is that the best way out of

child labor is simply for a society to
child labor is simply for a society to

become wealthier and then the children
become wealthier and then the children

will not be sent so much to work but
will not be sent so much to work but

there's another point of view which
there's another point of view which

suggests that in the meantime the law
suggests that in the meantime the law

can bring about an improvement let's
can bring about an improvement let's

think about how this argument might work
think about how this argument might work

in one version of this view in the labor
in one version of this view in the labor

market there are multiple
market there are multiple

Colibri uh one of them is here and
Colibri uh one of them is here and

another of them is here and to think
another of them is here and to think

about what that might mean intuitively
about what that might mean intuitively

here's how that goes imagine that you
here's how that goes imagine that you

passed a law banning child labor that
passed a law banning child labor that

would limit the number of individuals in
would limit the number of individuals in

the workforce it might raise wages
the workforce it might raise wages

somewhat and perhaps if all of the
somewhat and perhaps if all of the

children cease working family wages will
children cease working family wages will

be higher and it won't be necessary to
be higher and it won't be necessary to

send the children after work but for
send the children after work but for

this to be successful perhaps you have
this to be successful perhaps you have

to ban child labor across the board oh
to ban child labor across the board oh

we don't know if this argument is true
we don't know if this argument is true

but it is an argument that has been made
but it is an argument that has been made

for banning child labor outright and not
for banning child labor outright and not

simply waiting for societies to become
simply waiting for societies to become

wealthier another argument for banning
wealthier another argument for banning

child labor outright is called
child labor outright is called

the child labor trap and that goes this
the child labor trap and that goes this

way the claim is it's not efficient to
way the claim is it's not efficient to

send children out to work ideally it
send children out to work ideally it

would make more sense to educate the
would make more sense to educate the

child and then have the child pay
child and then have the child pay

parents back overtime with later
parents back overtime with later

earnings but maybe that kind of
earnings but maybe that kind of

arrangement cannot be enforced unless
arrangement cannot be enforced unless

the parents get what they can out of the
the parents get what they can out of the

child which is to make the child work
child which is to make the child work

now that means when the child grows up
now that means when the child grows up

the child is as then as a parent is not
the child is as then as a parent is not

educated and is much poorer and that
educated and is much poorer and that

individual will in turn send his or her
individual will in turn send his or her

children out to work and you're stuck in
children out to work and you're stuck in

a series of generations where each
a series of generations where each

generation sends the children out to
generation sends the children out to

work but if you could somehow snap this
work but if you could somehow snap this

spring by banning child labor and the
spring by banning child labor and the

children then get more educated well it
children then get more educated well it

could be the case that the whole series
could be the case that the whole series

of generations would be better off for
of generations would be better off for

this argument to be true of course you
this argument to be true of course you

probably do need a fairly good
probably do need a fairly good

educational opportunity for those
educational opportunity for those

children other economists have argued
children other economists have argued

that laws against child labor actually
that laws against child labor actually

can be counterproductive and might even
can be counterproductive and might even

lead to more child labor here's a way to
lead to more child labor here's a way to

think about it if you pass a law banning
think about it if you pass a law banning

child labor
child labor

that means employers of child labor take
that means employers of child labor take

on more risk but as we see in the real
on more risk but as we see in the real

world very often the practice still
world very often the practice still

continues but what happens is that the
continues but what happens is that the

children who are working they are now
children who are working they are now

paid lower wages because hiring them
paid lower wages because hiring them

involves greater risk those children are
involves greater risk those children are

paid lower wage
paid lower wage

the families are then poorer they have
the families are then poorer they have

lower income and they're at the verge of
lower income and they're at the verge of

subsistence so how do they respond they
subsistence so how do they respond they

respond by actually increasing the labor
respond by actually increasing the labor

supply of the other children and sending
supply of the other children and sending

even more children out to work because
even more children out to work because

they need to do so to continue to eat of
they need to do so to continue to eat of

these three different mechanisms I've
these three different mechanisms I've

outlined I would stress that we don't
outlined I would stress that we don't

yet know how true each one of them may
yet know how true each one of them may

be there are many interesting papers on
be there are many interesting papers on

child labor but note that data in this
child labor but note that data in this

area good data they're really quite hard
area good data they're really quite hard

to come by but you can read all of these
to come by but you can read all of these

online and note also the first one
online and note also the first one

listed by Basu is the source of the
listed by Basu is the source of the

first figure in this video an excellent
first figure in this video an excellent

survey piece is this one listed here
survey piece is this one listed here

also online and note it's the source for
also online and note it's the source for

our second and third figures in this
our second and third figures in this

video child labor is an important issue
video child labor is an important issue

it's very important to think
it's very important to think

analytically about it and not just
analytically about it and not just

emotionally but it's also very hard to
emotionally but it's also very hard to

do nonetheless this is an introduction
do nonetheless this is an introduction

to some of the leading issues
to some of the leading issues