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GLM|LIC Synthesis Paper No. 3

Economic Growth and Child Labor in Low Income Economies

264 million children work in the world today. 64 percent are in activities that satisfy legal definitions of child labor. These working children are both a cause and a consequence of a lack of economic growth. Widespread child employment dampers future economic growth through its negative impact on child development and depresses current growth by reducing unskilled wages and discouraging the adoption of skill-intensive technologies. Child employment also appears to result from a lack of economic growth. Rising incomes are associated with improvements in the family’s ability to triage economic shocks without child labor, shifting production outside of the home, and a greater demand for education and leisure. All of these factors lead to declines in the economic activity of children when income levels are on the rise. Child labor is both an issue of rights and of economic development.

GLM|LIC Synthesis Paper No. 3

Economic Growth and Child Labor in Low Income Economies

  • Eric V. Edmonds
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IZA and the UK Government Department for International Development (DFID) run the joint IZA/DFID Growth and Labour Markets in Low Income Countries Programme (GLM|LIC), which aims to improve worldwide knowledge on labour market issues in low-income countries (LICs).

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Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

Based on academic excellence and an ambitious publication strategy, IZA serves as a place of communication between academic science and political practice.

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The Department of International Development (DFID) leads the UK's work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit.

DFID is a ministerial department, supported by 2 agencies and public bodies.

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