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01 / 05
Growth Is the Ultimate Weapon in Ending Child Labor

Blog Post | Labor & Employment

Growth Is the Ultimate Weapon in Ending Child Labor

The total number of child laborers fell from 246 million in 2000 to 152 million in 2016.

Children's involvement in Child Labor.

Child labor was once ubiquitous. Take, for example, ancient Rome. As Mary Beard noted in her 2015 book SPQR: A History of Ancient Rome, “Child labour was the norm. It is not a problem, or even a category, that most Romans would have understood. The invention of ‘childhood’ and the regulation of what work ‘children’ could do only came fifteen hundred years later and is still a peculiarly Western preoccupation.” Today, fewer than 10 percent of children worldwide have to work for a living. By and large, those that do, live in poor countries. Economic growth, which was key to eliminating child labor in the developed world, can achieve the same outcome in the developing one.

Prior to the mechanization of agriculture, which increased farm productivity, there were no food surpluses to sustain idle hands – including those of children. “The survival of the family demanded that everybody contributed,” writes Johan Norberg in his 2016 book Progress: Ten Reasons to Look Forward to the Future. As such, “it was common for working-class children to start working from seven years of age … In old tapestries and paintings from at least the medieval period, children are portrayed as an integral part of the household economy.… [with many working] hard in small workshops and in home-based industry,” Norberg continues.

As agricultural productivity increased, people no longer had to stay on the farm and grow their own food. They moved to the cities in search of a better life. At first, living conditions were dire, with many children working in mines and factories. By the middle of the 19th century, however, working conditions started to improve. Economic expansion led to increased competition for labor and wages grew. That, in turn, enabled more parents to forego their children’s labor and send them to school instead.

Between 1851 and 1911, for example, the share of British working boys and girls between the ages of 10 and 14 dropped from 37 and 20 percent respectively to 18 and 10 percent respectively. In the United States, the share of working 10 to 13 year olds fell from 12 percent in 1890 to 2.5 percent in 1930.

In his 2018 book Enlightenment Now: The Case for Reason, Science, Humanism, and Progress, Harvard University professor Steven Pinker recounts how technology helped get boys off the farm and into the classroom. He quotes a tractor advertisement from 1921, “By investing in a Case Tractor and Ground Detour Plow and Harrow outfit now, your boy can get his schooling without interruption, and the Spring work will not suffer by his absence. Keep the boy in school—and let a Case Kerosene Tractor take his place in the field. You’ll never regret either investment.”

While legislation eventually enshrined in law what was already happening in practice and banned child labor, it is crucial to remember that it was only after a critical mass of children were pulled out of the labor force by their parents that people realized that life without child labor was possible. Similar processes are taking place in the rest of the world today.

According to the International Labor Organization’s 2017 Global estimates of child labor: results and trends 2012-2016 report, child laborers as a proportion of all children aged 5 to 17 dropped from 16 percent in 2000 to 9.6 percent in 2016. That year, 19.6 percent of children worked in Africa, 2.9 percent in the Arab states, 4.1 percent in Europe and Central Asia, 5.3 percent in the Americas and 7.4 percent in Asia and the Pacific.

The total number of child laborers fell from 246 million in 2000 to 152 million in 2016. That’s a reduction of 38 percent over a relatively short period of 16 years. In 2016, almost half of child laborers lived in Africa (72.1 million), which is the world’s poorest continent. Over 62 million child laborers lived in the populous Asia and the Pacific region. Some 10.7 million lived in North and South America, 1.2 million lived in the Arab States and 5.5 million lived in Europe and Central Asia.

As was the case throughout human history, agriculture continued to dominate child employment, accounting for 71 percent of child laborers. Services employed 17 percent of child laborers and industry 12 percent. In spite of continued population growth, the International Labor Organization expects that the total number of child laborers will continue to decline, falling to between 121 and 88 million in 2025. As such, the importance of economic growth in developing countries cannot be overstated.

This first appeared in CapX. 

Wall Street Journal | Employment

The New Jobs Being Created by AI

“Artificial intelligence has sparked fears it will become a job killer. It’s also fueling a crop of new careers.

AI created 640,000 jobs between 2023 and 2025 in the U.S., according to an analysis by LinkedIn of job posting data, including new white-collar positions such as head of AI and AI engineer. That tally doesn’t include the huge number of temporary construction jobs tied to building the mammoth data centers AI relies on…

The fast-emerging new jobs help train AI to improve its performance and take on more tasks, and help train humans to use AI in their work. The jobs run the gamut from high-level careers in AI strategy to hourly work. Many of these new employees work directly for AI companies, but other industries including finance, healthcare and manufacturing are also snapping up such workers as they seek to capitalize on the technology.”

From Wall Street Journal.

World Bank | Quality of Government

Côte D’Ivoire’s Land Reforms Are Unlocking Jobs and Growth

“Secure land tenure transforms dormant assets into active capital—unlocking access to credit, encouraging investment, and spurring entrepreneurship. These are the building blocks of job creation and economic growth.

When landowners have secure property rights, they invest more in their land. Existing data shows that with secure property rights, agricultural output increases by 40% on average. Efficient land rental markets also significantly boost productivity, with up to 60% productivity gains and 25% welfare improvements for tenants…

Building on a long-term partnership with the World Bank, the Government of Côte d’Ivoire has dramatically accelerated delivery of formal land records to customary landholders in rural areas by implementing legal, regulatory, and institutional reforms and digitizing the customary rural land registration process, which is led by the Rural Land Agency (Agence Foncière Rurale – AFOR).

This has enabled a five-fold increase in the number of land certificates delivered in just five years compared to the previous 20 years.”

From World Bank.

Curiosities | Trade

The Real Story of the “China Shock”

“The total number of jobs remained largely stable in the U.S.—and even slightly increased—as people adapted to competition from Chinese trade. Trade-exposed places recovered after 2010, primarily by adding young-adult workers, foreign-born immigrants, women and the college-educated to service-sector jobs.

Lost in the alarm over jobs is that trade with China delivered substantial benefits to the U.S. economy. Most obvious are the lower prices Americans pay for everything from clothing and electronics to furniture. One study found that a 1 percentage point increase in imports from China led to about a 1.9% drop in consumer prices in the U.S. For every factory job lost to Chinese competition, American consumers in aggregate gained an estimated $411,000 in consumer welfare. This so-called Walmart effect disproportionately helped middle- and lower-income families, who spend a bigger share of their budget on the kinds of cheap goods China excels at producing.

U.S. businesses also reaped advantages. Manufacturers who use imported parts or materials benefited from cheaper inputs, making them more competitive globally. An American appliance company, for example, could buy low-cost Chinese components to lower its production costs, keep its product prices down and potentially hire more workers.”

From Wall Street Journal.

Reason | Employment

Amazon Warehouses Benefit Local Economies, Study Finds

“In a newly-released research paper, Evan Cunningham, a Ph.D candidate in Economics at the University of Minnesota, studied the effects of Amazon’s continued spread across the country—growing from just a handful of warehouses, or ‘fulfillment centers,’ in 2010, to more than 1,300 today in the U.S. alone. On balance, it turns out that Amazon warehouses provide a net positive to local economies.

‘I find Amazon’s entry in a metro [area] increases the total employment rate by 1.0 percentage points and average wages by 0.7 percent,’ Cunningham writes. ‘The composition of employment shifts from retail and wholesale trade to warehousing and tradeable services, primarily driven by younger workers. Employment gains are concentrated among non-college workers.'”

From Reason.