International Labor Standards The Expert Group on Development Issues (the EGDI) was formed by the Swedish government in 1995 The group consists of a number of international experts in development-related academic areas along with Swedish policy makers The group initiates projects of importance to the development debate More information about the EGDI may be found on the website: www.egdi.gov.se International Labor Standards History, Theory, and Policy Options Edited by Kaushik Basu Henrik Horn Lisa Román Judith Shapiro © 2003 by Blackwell Publishing Ltd except for editorial material and organization © 2003 by Kaushik Basu, Henrik Horn, Lisa Román, and Judith Shapiro 350 Main Street, Malden, MA 02148-5018, USA 108 Cowley Road, Oxford OX4 1JF, UK 550 Swanston Street, Carlton, Victoria 3053, Australia Kurfürstendamm 57, 10707 Berlin, Germany The right of Kaushik Basu, Henrik Horn, Lisa Román, and Judith Shapiro to be identified as the Authors of the Editorial Material in this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher First published 2003 by Blackwell Publishing Ltd Library of Congress Cataloging-in-Publication Data International labor standards : history, theory, and policy options / Edited by Kaushik Basu, Henrik Horn, Lisa Román, and Judith Shapiro p pm Papers based on a conference held in Stockholm in August 2001 Includes bibliographical references and index ISBN 1–4051–0555–0 (hbk : alk paper) – ISBN 1–4051–0556–9 (pbk : alk paper) Labor policy – Congresses Labor – Standards – Congresses Labor laws and legislation, International – Congresses I Basu, Kaushik HD7795 I554 2003 331.12′02′18–dc21 2002006147 A catalogue record for this title is available from the British Library Set in 10/12pt Bell by Graphicraft Limited, Hong Kong Printed and bound in the United Kingdom by TJ International, Padstow, Cornwall For further information on Blackwell Publishing, visit our website: http://www.blackwellpublishing.com Contents List of Tables and Figures ix List of Acronyms xi List of Contributors xii Part I: Introduction Kaushik Basu, Henrik Horn, Lisa Román, and Judith Shapiro Part II: The Evolution of Labor Standards Chapter The History and Political Economy of International Labor Standards Stanley L Engerman Introduction Categories of Labor Standards The Sources of Agitation for Improved Labor Standards Morals and Economics: Long-standing Arguments Control and Enforcement Patterns of Labor Standards Evolution Early Examples of Legislation The Types of Legislation The Impact of Labor Standards Early International Agreements The International Labor Organization Final Remarks 10 11 23 30 31 36 39 60 60 66 68 vi CONTENTS Appendix 1: Labor Standards in the Scandinavian Nations Commentary 1.1 The Parallels Between the Past and the Present Jane Humphries 69 84 The Parallels Between the Past and the Present The Macroeconomics of Child Labor The Microeconomics of Child Labor Labor Standards and Social Policy Conclusion Appendix: Nussbaum’s List 84 88 92 93 94 95 Commentary 1.2 Legislation Versus Bargaining Power: The Evolution of Scandinavian Labor Standards Karl-Ove Moene and Michael Wallerstein 99 Part III: The Theory of International Labor Standards Chapter The Impact of International Labor Standards: A Survey of Economic Theory Nirvikar Singh Introduction Delineating Labor Standards Labor Markets and Labor Standards Labor Standards in the Global Economy Who Decides and How? What Happens to the Poor? Conclusion Appendix 1: Basic Competitive Model Appendix Appendix 3: Monopsony 105 107 107 110 116 135 144 156 165 166 167 170 Commentary 2.1 Old Wine in New Bottles? T N Srinivasan 182 Commentary 2.2 Governing Labor Relations Tore Ellingsen 187 Incomplete Contracts and Workers’ Rights Working Conditions Conclusion 188 189 190 CONTENTS Part IV: The Issue Of Child Labor Chapter Child Labor: Theory, Evidence, and Policy Drusilla K Brown, Alan V Deardorff, and Robert M Stern Introduction Theories of Child Labor: Models of Household Decisions Empirical Evidence on the Determinants of Child Labor Traditional Policies Targeting Child Labor and Education Recent Policy Initiatives Addressing Child Labor Child Labor Standards Initiatives in the International Arena Conclusions Commentary 3.1 The Political Economy of Child Labor Alan B Krueger Conclusion Commentary 3.2 Social Norms, Coordination, and Policy Issues in the Fight Against Child Labor Luis-Felipe López-Calva The Role of Social Norms A Comment on Policy Concluding Remarks Part V: The International Organization and Enforcement of Labor Standards Chapter A Role for the WTO Robert W Staiger Introduction Identifying the Problems The Institutional Features of the WTO and the ILO The Assignment of Problems to Institutions The Role of the WTO in Preventing Race-to-the-bottom/Regulatory-chill Problems The Role of the WTO in Enforcing ILO Agreements vii 193 195 195 196 201 218 225 237 241 248 254 256 256 267 267 271 273 273 276 281 290 292 298 viii CONTENTS Evaluating the Options Summary and Conclusion Commentary 4.1 Trade and Labor Standards: To Link or Not to Link? L Alan Winters Commentary 4.2 The Need to Micro-Manage Regulatory Diversity Petros C Mavroidis The The The The Index Argument in Staiger’s Study Argument in this Commentary Function of the WTO Contract in a Nutshell Limits of the Current WTO Contract 302 304 309 314 314 314 315 320 326 Tables and Figures Tables 1.1 1.2 Factory laws of European countries 12–21 Development of legal minimum age for employment, and normal maximum working day for children in the United Kingdom 24–8 1.3 Ratio of students in school to population ages 5–19 and the proportion of the population voting for selected countries, 1895–1945 33–4 1.4 International comparisons of laws relating to suffrage, and the extent of voting 35 1.5 (a) State compulsory education and child labor laws in 1879–80, and (b) State maximum hours’ laws affecting women in 1879–80 38 1.6 Labor-hour laws in all occupations for men, women, or minors in all States and Territories, November 1, 1899 40–3 1.7 Women and child labor laws in the United States, 1910 44–6 1.8 Duties of factory inspectors in the United States, various States, 1877–91 47–8 1.9 Maximum-hours legislation and scheduled hours, by state women, 1909–19, in the United States 49–50 1.10 (a) Minimum age of admission to industrial labor (1919), and (b) Duration of nighty recess for women 52–3 1.11 Age of legal employment and maximum legal hours of labor of children employed in factories in the United States, January 1, 1913 53–4 1.12 List of bilateral and plurilateral international agreements regarding labor questions 63–5 x TABLES AND FIGURES 2.1 2.2 Labor standards as rights Preferences that lead to a conflict between rights and outcomes 3.1 Sequential probit analysis for selected countries in Latin America: Probability that a child works 3.2 Sequential probit and logit analysis for selected countries in Latin America: Probability of fulltime work 3.3 Probability of child work and schooling for selected countries in Africa 3.4 Sequential probit analysis for selected countries in Asia 3.5 Child labor and education Labor force participation rates, minimum age of work, and compulsory education 3.6 Percentage of children leaving school, by age, for selected countries, 1959–74 birth cohort 3.7 Probit estimates of determinants of Congressional support for labeling of cocoa products made with enslaved child labor and for fast-track trade promotion authority: US House of Representatives, 2001 3.8 Sequential probit results for 1994–98 3.9 Bivariate probit results for 1994–98 3.10 Variables used in the bivariate probit, multinomial logit and sequential probit models 111 114 203 204 209 213 220 220 253 264 265 266 Figures 1.1 2.1 2.2 2.3 2.4 2.5 2.6 3.1 Child labor and GDP per capita Competitive equilibrium in the labor market A labor market with compensating differentials Monopsony in the labor market Multiple competitive equilibria with survival constraint Unique competitive equilibrium at subsistence Multiple equilibria with and without child labor Member of household aged 60 and over living with grandchild 3.2 Rational expectations equilibria and the labor market 4.1 The Oecedia/Developia complaints matrix 89 117 121 126 127 129 158 257 262 317 328 INDEX Brown, D K., Deardorff, A V and Stern, R M (Brown et al.) xii, on child labor 196–269 on impact of international labor standards 107, 111, 123, 132, 138, 140, 143, 172–3, 175 Brownlie, I 70 Brussels Congress 37 Buchanan, J 171 Bucovetsky, S 141 Bulgaria 53 Bulow, J 173 Burma 311 Burra, N 201 California 154–5 history 38, 42, 44, 49, 51, 53 Campbell, D 73 Canada: history and political economy 30, 34, 72 legislation, types of 39, 52, 55, 56 Canagarajah, S 208–9 capital market failure and liquidity constraints 200–1, 249 Cartwright, K 203, 204, 206–7 Casella, A 140, 143, 174 caste in India 182, 226 categories of labor standards 10–11, 12–21 see also core labor standards; hours of work; labor-management relations; wages; working conditions CEA (Council of Economic Advisors) 184 Central America see Latin America certification, third-party 148–9 Chang, H.-J 75 Charnovitz, S 71 Chatterji, M 188 Chau, N 143–4, 153, 173, 175, 182 cheat, incentive to 148–9 Chernichovsky, D 197 Chesneaux, J 74 child labor 135, 164, 193–269 definition needed 250 elimination: goal 11, 67, 111–12; pushing child towards hazardous work 157–8 fight against 259–69 legislation 222–4; early 38, 40–6, 52–4, 69 macroeconomics of 88–92 microeconomics of 92–3, 164, 231 policies 267; see also recent policy; traditional policies political economy of 248–55 poverty 198–9, 205, 210, 211, 249; see also subsidies social norms 256–67 stigma of 200, 258–67 wages 158 see also empirical evidence on child labor; international initiatives on child labor; minimum working age; recent policy initiatives; theories on child labor children, women treated as 29–30, 57, 85–6 Chile 34, 220 China abandoned children 93 history and political economy 56, 63, 64, 66, 74 migrant labor from 57, 62, 63, 64, 75 choice, freedom of 113, 115, 133–4 Chowdhury, P R 172 civic rights 110–11 Clark, C M H 74 Clinton, W 184 club good 123 Coate, S 258 coercion and free choice distinct 133–4 collective action and political economy 150–3 Collins, S M 76 Cologne Conference (1902) 62 Colombia 34, 203–7 Colorado 41, 42, 44, 49, 52, 53 Commons, J R 72, 74 comparative advantage and child labor 237–9 compensating differentials model 121–2, 124–5, 129–31 compensation for introduction of labor standards 57 INDEX competition/competitiveness 276, 289 basic model 117–19, 166–7 and child labor 237–9 equilibrium 117–19, 127, 129, 185 imperfect 142–3 conciliation and arbitration 10 Conconi, P 306 conflict, rights 114–16 congestion effects 123 Conklin, A L 74 Connecticut 38, 40, 42, 44, 47–8, 49, 52, 53 Connick-Smith, N de 73 consequentialism 113, 115, 116, 183 consumer/consumption externalities and product labeling 146–50 preferences 146–50 and welfare 113 contracts incomplete 188–9 labor 10, 133 control and enforcement, history of 30–1 rights 188 convict labor 11, 31 cooperative harmonization 138 core labor standards (CLS) 111, 112, 153, 163 listed 11 co-residence, intergenerational 257 Cornes, R 123, 172 Costa Rica 34, 35 costs 238 education 161, 203–10 passim, 215 of labor, marginal 126 monitoring 149 Cote d’Ivoire: child labor 197, 209, 210, 211–12, 214 cotton see textile industries Coulombe, H 208–9, 211 Council of Economic Advisors 184 Craftes, N F R 89 creationism 183–4 credibility 151–2 329 credit institution, formal 133, 188 micro-credit 164, 231 rural 164 Creighton, C 86 cross-border externalities 139, 153–6 Cuba 34, 61, 63 Cunningham, H 70, 73, 75, 88 Cyprus 55 danger see safety risks Dankert, C E 75 Dasgupta, P 164 Datta, S 172 De Herdt, R 91 de Waart, P 173 Deane, P 90 Deardorff, A V see Brown, D K debt slavery see bonded labor decision-making family 92–3 and impact of labor standards 109, 144–56; consumption externalities and product labeling 146–50 drawing line 153–6 political economy and collective action 150–3 Delaware 44, 49, 51, 52, 53 delineating labor standards 110–16 current examples 110–12 framing 112–16 demand for labor 158, 159 child 212–18 and labor markets 117–19, 127, 129 Denham, D 93 Denmark history and political economy 16–17, 33, 35, 65, 69–70, 100, 103 legislation, types of 52–3, 55 developed world see North developing world see South Dickens, W 123, 126, 131, 171 differentials, compensating, model of 121–2, 124–5, 129–31 Dillon, C H 73 discrimination and harassment 11, 67, 134, 135, 182 elimination of 11, 67, 111–12 330 INDEX dispute settlement procedure 312–13 District of Columbia 41, 43, 49, 52, 54 diversification hypothesis and child labor 197, 205–6 diversity, regulatory see ILO; micromanagement; WTO Dixit, A 159, 306 Dreze, J 212, 213 DSP (dispute settlement procedure) 312–13 Duflo, E 235 Dunlop, O J 93 Dutch East Indies 74 economy see history; political economy Ecuador 35, 208 Ederington, J 306 Edström, U 176 education and child labor 203–12; costs 161, 203–10 passim, 215, 225–6, 228, 235; infrastructure 225–6, 228, 235; level of parents 202–16 passim; minimum age and compulsory 218–24; private tuition to pay for 208, 210; quality/accessibility of school 202, 208–15 passim, 235–7, 242–3; school leaving age 221–2, 248–9; school for some (diversification hypothesis) 197, 205–6 investment in 159–61 remedial 226, 232 effectiveness of child labor policy 233–7 egalitarian wages 188 EGDI (Expert Group on Development Issues) Egypt child labor 212, 220, 225, 227, 230 history and political economy 52, 56, 74 El Salvador 35 Ellingsen, T xii, on impact of international labor standards 126, 132, 162, 165, 172, 175, 187–91 Elster, J 258 emigration see migrant labor empirical evidence on child labor determinants 201–18 age of child 217 demand 212–14 household assets 216 household decision-making 202–3 household income 215–16 needs of industry 217–18 parental education 214–15 siblings 217 work and school 203–12 Enders, A 173 endogenous choice 133 enforcement, international inadequate 288–9, 291 see also ILO; WTO Engel, E 252 Engerman, S L xii, 218 on history and political economy of labor standards 9–70, 84–104 three-part classification of labor standards 112, 118; labor market see hours; wages; labor-management relations see bargaining; unions; location of work see working conditions England see United Kingdom Epstein, S A 70 equilibrium 143–4 analysis, general 140 competitive 117–19, 127, 129, 185 multiple equilibria theory of child labor 199–201 survival 128–9, 130 Eswaran, M 160 ethics see morals/ethics Europe child labor 220, 221, 226, 232, 257 history and political economy 30; ILO’s formation 288–9, 291, 299, 322–3, 324; international agreements, early 61–5; legislation, early 12–22; legislation, types of 39, 50, 52–3, 55, 56, 59; schooling ratio and suffrage 32–3, 35 INDEX parallels with present 91 see also Austria; Belgium; France; Germany; Hungary; Italy; Netherlands; Scandinavia; Spain; Switzerland; United Kingdom Evans, R 75 evolution of labor standards 7–104 pattern of 31–6 Scandinavian 69–70, 99–104 see also history; parallels between past and present Expert Group on Development Issues externalities 282 consumption, product labeling and 146–50 cross-border 139, 153–6 see also non-pecuniary externalities; pecuniary externalities factories and workshops 58, 232 inspectors 31, 47–8 see also textile Factory Acts see under legislation fairness 113 Fairris, D 172, 190 Falk, A 187 family see household/family Farnam, H W 71, 73 fathers 202 mortality 92, 93 FCI (formal credit institution) 133, 188 federal systems see Australia; Canada; Switzerland; United States Felt, J P 74 Fetter, F W 75 Fields, G 112, 163 Fiji 73 filial interaction 256–8 see also parents financial incentives to stop child labor 227–30 Fine, S 74 Finegan, T 222, 223–4 Finland: history 33, 35, 53 331 first-best policy 152 Fishback, P V 74 Fitzpatrick, B 74 flexible schedules and child labor problems 226 Florence, P S 75 Florida 38, 41, 43, 44, 49, 52, 53 Follows, J W 73 food programs to prevent child labor 212, 213, 227, 229, 233–5 forced labor 155 elimination of 11, 67, 111–12 prison labor 280–1, 289 see also bonded labor framing labor standards 112–16 France 257 history and political economy 74, 299; international agreements, early 61–5; legislation, early 12–13; legislation, types of 52–3, 55, 56; parallels with present 91; schooling ratio and suffrage 33, 35 Frankfurt Congress (1857) 37 free choice and coercion distinct 133–4 free contracting rights 132–3, 134 “free-rider” problem 123, 124, 150 freedom of choice 113, 115, 133–4 Freeman, R 146, 148, 155, 157, 174, 239 Freije, S 263 Fung, K.-C 152–3, 157, 174 Furniss, E S 70 future income of educated child and borrowing against 198–9, 200–1, 215 game theory 188 GATT 175 see also WTO gender differences (mainly women) and child labor 202–16 passim, 223–4; higher subsidies for girls at school 230; working mothers 202–13 passim; girls with 197, 233 332 INDEX gender differences (cont’d ) and history (mainly legislation) 10, 56, 58; hours of work 28, 32, 36, 38, 40–3, 49–54, 67, 69; nightwork forbidden 44–6, 52–4 men regarded as adults 29, 30 minimum working age 24–7, 36, 44–6 suffrage 35 women regarded as non-adults 29–30, 57, 85–6 Generalized System of Preferences (GSP) 322–3 Genicot, G 133, 134, 159, 164, 173, 185–6 Georgia 38, 41, 43, 44, 49, 52, 54, 75 Germany 257 history and political economy 72; and ILO 67 international agreements, early 61–5 legislation, early 14–15 legislation, types of 52–3, 55; schooling ratio and suffrage 33, 35 Ghana: child labor 197, 208–10, 215 Glewwe, P 212 global economy, labor standards in 135–44 international trade 136–40 race to bottom 141–4 trade and skills 140–1 see also international under trade Goats-to-School program 229–30 Goldin, C D 51, 72, 75, 199, 201, 214 Golub, S 107, 111 Gompers, S 72 Goodman, J 86 Goodrich, C 71 Gordon, M S 73 government welfare function 139–40 Gray, R 74 Greece 52 Green, W 76 Grootaert, C 160, 199, 209, 210–11, 219 Grossman, G 162, 190 groups, consumer 146–50 GSP (Generalized System of Preferences) 322–3 Guatemala 35, 55, 220, 226 Guinea 63 Gupta, M 201 Haiti 55 Hamilton, A 71 Hanushek, E 197, 206, 212 harassment see discrimination Harmon, C 221 harmonization, cooperative 138 Harrison, A 70, 72, 73, 86 Hart, O 162, 190 Hartz, L 71 Hawaii 63 Hayes, C J 73 hazards see safety Heady, C 208 Heckscher, E F 70, 138 Helpman, E 162 Henry, P 74 Hermalin, B 173 Hewitt, M 90 Heywood, C 91 Hindley, C 37, 61, 73 history and political economy of international labor standards categories of labor standards 10–11, 12–21 control and enforcement 30–1 evolution pattern of 31–6 impact of 60 international agreements, early 60–5 legislation, early examples of 24–8, 36–9 legislation, types of 39–59 morals and economics 23, 29–30 Scandinavia 69–70, 99–104 sources of agitation for improvement 11, 22–3, 24–8 see also ILO; parallels between past and present Hobson, J A 71 INDEX Honduras 33 Honeyman, K 86 Horn, H 173, 175 on international labor standards 1–6 Horrell, S 88, 89, 93 hours of work 10, 112 and labor markets 117–19, 126–7, 129 for women and children 28, 29, 32, 36, 38, 40–6, 49–54, 69 household/family and child labor 196–7, 202–3, 215–16, 242 children as assets 196–7, 216 decision-making 92–3, 202–3 enterprise as asset 202–13 passim see also parents; siblings Hubbard, W H 73 Huberman, M 73 Hudec, R E 73, 295, 307 humanitarian concerns and child labor 239–41 and ILO 291 and WTO 273–4, 276, 278–9, 281, 288 Humphries, J xii, on history and political economy 84–98 Hungary 14–15, 52–3, 55, 64 Hunter, L 75 Hutchins, B L 70, 72, 73, 86 Idaho 41, 43, 44, 49, 51, 52, 54 Illinois 38, 40, 42, 44, 47–9, 52, 54 ILO (International Labor Organization) child labor and Conventions on 157, 196, 218, 238, 241 Constitution see under Paris Peace Conference Conventions 137 core labor standards 153, 163; elimination of child labor, discrimination and forced labor 11, 67, 111–12 see also association; bargaining; working conditions 333 creation see Paris Peace Conference functions 287 goals 11, 67 history and political economy 66–8, 70–1, 74, 103 humanitarian/political problems 291 impact of international labor standards 111, 112, 137, 153, 163 institutional factors 274, 287–90 problems assigned to 274, 290–2 and WTO 298–302, 312, 314 immigration see migrant labor impact of international labor standards 107–91 governing labor relations 187–91 see also decision-making; delineating labor standards; global economy; labor markets and under poverty imperfect competition 142–3 imported goods equivalent to immigrant labor 154 improvement of labor standards, sources of agitation for 11, 22–3, 24–8 inadequate enforcement 288–9, 291 incentive to cheat 148–9 income low see poverty replacement see subsidies see also wages India 154, 226 child labor 201, 212, 213–14, 220, 231 history and political economy 52, 55, 56, 61, 63, 66 impact of international labor standards 155, 157, 182 and USA example and WTO 276–81, 309–10 Indiana 38, 40, 42, 44, 49, 52, 54 Indonesia 235 industry see factories; mining information asymmetries and labor markets 130–2 gaps 131 as public good 130 334 INDEX injury at work 55, 130 see also safety risks Innes, J 87, 89, 90, 94 institutional factors and ILO 274, 287–90 institutions, global see international organizations intellectual property rights 303 interest groups “hijacking” rights 151–2 intergenerational child labor trap 256–8 international agreements early 60–5 need for 322–3 see also international labor standards; international organizations International Association for Labor Legislation 62 international conferences 37, 61–2, 67 see also Paris Peace Conference international initiatives on child labor 237–41 competitiveness and comparative advantage 237–9 humanitarian concerns 239–41 International Labor Organization see ILO international labor standards see child labor; history and political economy; impact; race-to-bottom; WTO international organizations see ILO; United Nations; World Bank; WTO international trade see trade International Workingman’s Association 39 investment in human capital (education) 159–61 Iowa 40, 42, 44, 49, 52, 54 Ireland 33 Issawi, C 74 Italy: history and political economy ILO 67, 299 international agreements, early 61, 62, 65 legislation, early 18–19 legislation, types of 52–3, 56 schooling ratio and suffrage 33, 35 Jacoby, H 212 Japan: history 55, 56, 65, 66, 67, 74 Jensen, P 209–10 job characteristics, non-pecuniary see working conditions loss 163 Johnston, G A 73, 287, 299, 300 Jones, E B 75 Jordan 322, 323 Kanbur, R 143–4, 153, 160, 173, 175, 182 on child labor 199, 219 Kansas 38, 40, 42, 49, 52, 54 Kantor, S E 74 Karlsson, M Keeling, F 28, 70, 72, 73, 74 Kelley, F 74 Kelly, M A 73 Kentucky 44, 49, 52, 54 Kenya 220 Kessler-Harris, A 75 Kingdon, G 212, 213 Klein, H S 70 Kranton, R 258 Krueger, A B xii, 5, 88–9 on child labor 198, 219–22, 248–55 Krugman, P 175 Kumar, D 74 labeling, product 148, 149, 252–3 labor markets 108–9, 116–35 competitive model, basic 117–19, 166–7 information asymmetries 130–2 monopsony 125–6, 170, 185 rights 132–5 survival 127–30 see also demand; global economy; hours; supply; wages; working conditions labor standards see international labor standards INDEX labor-management relations 10, 234, 251 governing 187–91 see also bargaining; contracts; unions Lall, A 213 Lancashire (UK): child labor 23, 29, 57, 89 see also textile Landes, W M 75, 76 Landy, E A 299 Laslett, P 92 Latin America child labor 197, 242–3; empirical evidence 203–8, 215, 217; political economy 249–50; recent policy initiatives 225–31, 235–7; social norms 256–67; traditional policies 219–21 history and political economy 61, 66, 74, 76; legislation, types of 39, 52, 55; schooling ratio and suffrage 31–2, 33–4, 35 Lavy, V 212, 215 League of Nations, ILO as offshoot of 36, 39, 66 legislation 9, 10, 71, 87, 88, 90, 93, 289–90 Factory Acts 12–22, 36, 55, 56–7 factory inspectors 31, 47–8 list of British 24–8 list of European 12–22 suffrage 35 types of 39–59, 66 versus bargaining power in Scandinavia 99–104 see also minimum working age and under child labor and gender differences Legrand, D 37 Levinson, M 174 Levison, D 197, 208, 214 Levy, S L 75 Lewchuk, W 73 Lewis, H 197 LFP (labor force participation) 212, 214, 216, 217, 223–4 Liberia 63, 65 335 libertarianism see rights life expectancy 92, 93 Limao, N 306 Lindbeck, A 113, 258 linkage 300–1 liquidity constraints 200–1, 249 loans see subsidies local standards lowered see race-tobottom long-run effects of poverty 161–3 López-Calva, L.-F xii, on child labor 256–69 Louisiana 41, 43, 44, 49, 52, 54 Lowe, B E 73, 76 lowered labor standards see race-tobottom Lown, J 86 Luxembourg 52–3, 64 Lynch, K A 73 McCulloch, J R 75 McKinley Tariff 72 Macleod, C 91 macroeconomics of child labor 88–92 Maggi, G 306 Mah, J 238 Maine 38, 40, 42, 44, 47–9, 50, 51, 53, 54 Malcomson, J M 190 Manski, C 267 Margo, R 222, 223–4 Marjit, S 175 market access and WTO 274, 276–9, 284–6, 309–11 failure and multiple equilibria theory of child labor 199–201 see also labor markets Martin, B 73 Martin, W 310 Marvel, H P 75, 87 Maryland 38, 41, 43, 44, 47–9, 51, 54 Maskus, K 107, 110–11, 240, 310 Massachusetts 38, 40, 42, 44, 47–9, 50, 52, 54, 71, 74 Mavroidis, P C xii, on WTO, role for 314–25 336 INDEX Melkas, H 225, 233 men see gender differences Mexico 311 child labor 220, 243, 249–50, 257–8; National Urban Development Survey 263–7; recent policies 225, 226, 228–9, 235–7 history and political economy 32, 34, 52, 62, 63 Michigan 38, 40, 42, 44, 47–9, 50, 54 micro-credit programs to stop child labor 164, 231 microeconomics of child labor 92–3, 164, 231 micro-management of regulatory diversity 314–25 WTO contract, function of 315–20 WTO contract, limits of 320–5 Mieszkowski, P 141 migrant labor 11, 57, 62, 63, 64, 75, 154 Milgrom, P 162 Mill, J S 57 Minchinton, W E 70 minimum age and compulsory education 218–24 minimum working age legislation 26–7, 29–30, 57, 69, 85–6 industry and mining 24–5, 36, 44–6 mining 231 history and political economy 59, 87, 90, 91 minimum working age 24–5, 44–6 restrictions on women and children 32, 36, 44–6, 58 Minnesota 40, 42, 44, 47–9, 50, 51, 52, 54 Mississippi 44, 49, 54 Missouri 41, 43, 44, 47–9, 52, 54 Miyamoto, K 257 Moberg, D 174 Moehling, C M 75, 201, 222–4 Moene, K.-O xii, on history and political economy 99–104 monitoring 149, 152–3 monopsony 125–6, 170, 185 Montana 41, 43, 45, 49, 52, 54 Montgomery, M 197 Moore, J 162 morals/ethics economics and history of labor standards 23, 29–30 as private good 239 rights violation 154–5 of slavery 84 see also rights Morse, D A 287 mothers, working see under gender Mozambique 64 multiple equilibria and market failure theory of child labor 199–201 Mummery, A F 71 Myanmar 311 Nardinelli, C 74, 90, 198 Nash equilibrium 143–4 National Urban Development Survey (ENEU) of Mexico 263–7 Nebraska 41, 42, 44, 49, 52, 54 Necker, J 71 needs of industry and child labor 217–18 Nelson, D 74 Nepal 73, 220, 232 Netherlands: history and political economy international agreements, early 63, 65 legislation, early 12–13 legislation, types of 52–3, 55 schooling ratio and suffrage 33, 35 Nevada 44, 49, 51, 52 New Hampshire 38, 40, 42, 44, 49, 50, 51, 52, 54 New Hebrides 64, 65 New Jersey 38, 40, 42, 45, 47–9, 50, 51, 52, 54 New Lanark 89 New Mexico 49, 51 New York (state) 38, 40, 42, 45, 47–9, 51, 52, 54 INDEX New Zealand: history and political economy 52, 55, 56, 72, 74 Nicaragua 220, 226 Nielsen, H 209–10 Nigeria 220 “nimble fingers” argument for child labor 212–13, 218 noncooperative behavior 123, 138 non-excludability of pure public good 122–3 non-pecuniary externalities see humanitarian concerns; political concerns non-pecuniary job characteristics see working conditions non-violation nullification-orimpairment right 294–8 North (developed world) impact of international labor standards 138, 143–4, 154, 157 see also Australia; Canada; Europe; United Kingdom; United States North Carolina 45, 49, 52, 54 North Dakota 35, 41, 43, 49, 52, 54 Norway: history 16–17, 33, 35, 52, 56, 69–70, 100–3 Novak, W J 75 Nozick, R 171 nullification rights 294–8 Nussbaum, M.: list 95–6 Oates, W 141 OECD (Organization for Economic Cooperation and Development) 155 core labor standards 111, 112, 163 Ogburn, W F 74 Ohio 38, 40, 42, 45, 47–8, 49, 51, 54 Oi, W 131 Oklahoma 41, 43, 49, 50, 52, 54 Olson, M., Jr 172 Oregon 45, 49, 51, 52, 54 orphans 93 outcomes 114–16 Owen, J D 75 Owen, R 37, 61, 89 337 Pahre, R 87, 151–2 Pakistan 153 child labor 212, 220, 232–3, 248, 250 Palemeter, D 320 Panagariya, A 175 Paraguay 197 parallels between past and present 84–98 macroeconomics of child labor 88–92 microeconomics of child labor 92–3 Nussbaum’s list 95–6 social policy and labor standards 93–4 Parente, S L 189 parents education level 202–16 passim see also altruism; fathers; mothers Pareto optimality/improvement 134, 136–7, 144, 160, 161, 163, 172–3, 185, 200 Paris Conference (1900) 62 Paris Peace Conference (1919) and creation of ILO 36, 39, 66, 71, 288–9, 291, 299 Preamble to Constitution 276, 287–8 Parker, S 237, 249 Parsons, D 199, 201, 214 Parsons, F 74 patriarchal attitude to women 24–7, 36, 44–6 Patrinos, H 197, 203, 204, 207, 208 Pattanaik, P 114, 171, 184 pay see wages pecuniary externalities 283, 309 see also race-to-bottom Peel, Sir R 22, 36, 87, 90 penalties for violation of regulation 31 Pennsylvania 38, 40, 42, 45, 47–8, 51, 52, 54, 58, 71 peonage see bonded labor Percival, Dr 23, 29, 84 Périgord, P 73 Perroni, C 306 Persia 66 338 INDEX Persons, C E 74 Peru child labor 203–4, 207–8, 220, 226, 231, 268 history and political economy 34, 35, 63 Petersmann, E.-U 295 Philadelphia Conference (1944) 67 Philippines: child labor 213, 220, 225, 226 Pinchbeck, I 90 Piore, M 161, 162, 175 Poblete-Troncoso, M 74 political concerns/social unrest: and WTO 273–4, 276, 278–9, 281, 288, 309, 311 political economy of child labor 248–55 and collective action 150–3 see also history and political economy Portes, A 110–11 Portugal 220 history and political economy 20–1, 33, 52–3, 56, 63, 64 poverty child labor 198–9, 205, 210, 211, 249; see also subsidies and impact of international labor standards 109, 156–65 investment in human capital 159–61 long-run effects 161–3 rights 163–5 unintended consequences 157–9 Powell, B 197 preferences, consumer 146–50 Prescott, E C 189 prison labor 280–1, 289 “Prisoners’ Dilemma” 3–4 private good 239 private tuition, child labor to pay for 208, 210 process 183 and outcome 114–16 product labeling 148, 149, 252–3 production subsidies 162 protectionism see tariffs Psacharopoulos, G 197, 203, 204, 207, 208 public good 150 information as 130 non-excludability of pure 122–3 working conditions as 122–5 public health 22, 23 Puerto Rico 52 quality of school 215 race/racism 57 race-to-bottom and impact of international labor standards 141–4 and regulatory-chill problems, prevention of 273, 275, 278–9, 281, 290, 292–8; and ILO 288; renegotiation and non-violation nullification rights 294–8; and WTO 274, 282, 291–2, 293–4 Ranjan, P 201 Rasmusen, E 258 Ravallion, M 234, 258 Ray, D 164, 176, 207, 212 Raynauld, A 127–8 recent policy initiatives on child labor 225–37, 241 educational infrastructure 225–6 effectiveness 233–7 financial incentives 227–30 micro-credit programs 164, 231 remedial teaching and flexible schedules 226 targeted sectors 231–3 reciprocal exchange 284 regulatory diversity see ILO; micromanagement; WTO religion see morals/ethics remedial education 226, 232 renegotiation see under race-to-bottom repetitive injury 130 reservation, utility 120 resource allocation problem 123–4 Revesz, R 141 Rhode Island 38, 42, 45, 47–9, 52, 54 Richardson, J D 73 INDEX rights 137, 150, 183, 184–5 basic 110–11, 115, 163–4 bonded labor 133–4 civic 110–11 control 188 free contracting 132–3, 134 interest groups “hijacking” 151–2 and labor contracts 188–9 labor markets 132–5 non-violation nullification 294–8 and outcomes, conflict between 114–16 and poverty 163–5 and sanctions 151–2 security 110–11 survival 110–11 welfare 113 working conditions 134–5, 189–90 see also morals/ethics Rimlinger, G V 74 risks see safety Robbins, L 75 Robinson, J 159, 160–1, 164, 198, 199, 200, 215 Rodrik, D 154, 155, 189, 238 Rogers, C 175, 240 Rollo, J 310 Román, L 243 on international labor standards 1–6 Rose, M 93 Rose, S O 86 Rosen, S 171 Rosenzweig, M 197 Rothschild, E 251 Rothstein, R 158 Rumania 52–3 Russia (Soviet Union): history and political economy 18–19, 32, 36, 52–3, 56, 66–7, 73 Sachs, J 155 safety risks and hazards child labor 229, 231 and impact of international labor standards 112, 113, 114, 130–1, 135 339 legislation 59 when export industry child labor abolished 157–8 Saito, O 91 Sakalariou, C 213 Samoa 63 San Martin, O 212 sanctions see tariffs Sanderson, A R 76 Sandler, T 123, 172 Scandinavia: history and political economy 16–17, 33, 35 evolution of 69–70, 99–104 international agreements, early 64–5 legislation, types of 52–3, 55, 66 Schmiechen, J A 74 Scholliers, P 221 Schultz, P 236, 237 Schwab, R 141 Seccombe, W 86 security rights 110–11 Seltzer, A J 71, 74 Sen, A 95, 113, 114, 163, 164, 171 Sengenberger, W 73 Senior, N 57, 75 Serbia 52–3 servants, children as 90 sexual harassment 11, 134, 135 Shaftesbury, A A C., 1st Earl 57, 74, 95 Shapiro, C 174 Shapiro, J.: on international labor standards 1–6 Shaw, C 95 Shotwell, J T 53, 71, 72, 73 Siam see Thailand siblings (particularly older brothers) and child labor 202–13 passim, 216, 217 Sierra Leone 63 Sinclair, K 74 Singh, N xii, on impact of international labor standards 107–81, 182–91 skills and trade 140–1 Sklar, K K 74 340 Skoufias, E 237, 249 Slack, P 70 slaves 9, 51, 84, 155, 251 debt see bonded labor emancipation 11, 61, 67 Smith, A 103, 171, 251 soccer ball production 151, 153, 232–3 “social clause” of WTO 140, 156 social norms and child labor 256–67 social policy and labor standards 93–4 social security for old age, children as 257 social stigma and child labor 200, 258–67 Sokoloff, K 51, 72 Solano, E J 73, 74 Solomon Islands 62 Solomon, L C 76 sources of agitation for improvement of labor standards 11, 22–3, 24–8 South (developing world) 251 impact of international labor standards 138, 143–4, 157, 183 see also Africa; Asia; India; Latin America South Africa 311 child labor 220, 227 history and political economy 55, 64, 66, 67 South America see Latin America South Carolina 41, 43, 45, 49, 52, 54 South Dakota 41, 43, 45, 49, 50, 52, 54 South Korea 155, 257 Soviet Union see Russia Spagnolo, G 306 Spain: history and political economy 18–19, 33, 52–3, 55, 63, 65 Spitzbergen Convention 65 Srinivasan, T N xiii, on impact of international labor standards 118, 126, 136–40 passim, 151–5 passim, 158, 165, 171, 173, 175, 176, 182–6 INDEX Staiger, R W xiii, on impact of international labor standards 135, 139–40, 142–3, 144, 155–6, 157 on WTO, role for 273–308, 309–25 Steelman, L 197 Steinberg, R 74 Stern, R M xiii, 173 see also Brown, D K Stewart, B M 74 Stiglitz, J 130 stigma of child labor 200, 258–67 Stone, J F 73 Strauss, J 214 Streufert, P 164 sub-optimal standards see race-to-bottom subsidies (and loans) 137 for keeping child at school 199–201, 227–9, 231, 233–6, 242, 249; see also food programs targeted 164–5 suffrage 35 Sugden, R 171 Summers, L 254 Sumner, H L 46, 74, 75 supply, labor 158 child 196–212 and labor markets 117–19, 126, 127, 129 Surinam 63 survival equilibrium 128–9, 130 labor markets 127–30 rights 110–11 Suzumura, K 171 Sweden: history and political economy 16–17, 52–3, 56, 69–70 evolution 33, 35, 100–3 international agreements, early 64, 65 Swensen, P 102 Swinnerton, K 175, 240 Switzerland: history and political economy 30, 31, 71 international agreements, early 61–2, 64, 65 INDEX legislation, early 20–1 legislation, types of 39, 52–3, 55 schooling ratio and suffrage 33, 35 Tanzania 220 tariffs, protectionism and sanctions and child labor 239–40, 251 and history and political economy 31, 61 and impact of international labor standards 144, 151–3 and WTO 282–4, 286, 310 taxes 137, 142 Teleky, L 72 Tennessee 41, 43, 45, 49, 51, 52, 54 terms of trade 138, 139 Texas 41, 43, 45, 49 textile industries (mainly cotton) child labor 36, 221, 238 history and political economy 58, 87, 89–91; contagious disease 23, 29; hours of employment 28, 29, 32; minimum age 36 Thailand (Siam) 66, 220, 235, 257 Thaler, R 171 theories on child labor 196–201 household assets, children as 196–7 market failure and multiple equilibria 199–201 poverty hypothesis 198–9 theory, survey of see impact of international labor standards Third World see South third-party certification 148–9 monitoring 152–3 Thomas, D 214 Thomas, M W 70, 72, 73 Thomas, R 176 Tiebout, C 141, 169 Trachtman, J 320 trade international 30–1, 61, 136–40; see also global economy; tariffs 341 and skills 140–1 standards and WTO 309–13 unions see unions traditional policies targeting child labor and education 218–24 economic growth promotion 218 minimum age and compulsory education 218–24 Transvaal 64 Tripathy, S K 74 TRIPs agreement (WTO) 303 Tugan-Baronovsky, M I 73, 74 Turin, S P 74 Turkey 55 child labor 220, 226, 232 Tuttle, C 89, 90 Tzannatos, Z 235 “unacceptable” technology 154 unintended consequences of labor standards and poverty 157–9 unions and freedom of association 10, 67, 189–90, 251, 280 history and political economy 22, 85–6, 100–3 see also bargaining United Kingdom child labor 88–93, 218, 220–1, 224, 257 history and political economy 9, 10, 11, 22–3, 29–30, 61, 72, 73, 75, 76, 103; ILO’s formation 288–9, 291, 299; international agreements, early 60, 63, 64, 65; legislation, early 24–8, 36, 87, 90, 93, 99; legislation, types of 50, 52–3, 57–9; parallels with present 84–95; schooling ratio and suffrage 32, 33, 35 United Nations 66, 67 UNCLOS 323 UNESCO 241 UNICEF 153, 229, 241 United States child labor 197, 199, 214, 220–3, 251–4, 257; legislation, recent 72 342 INDEX United States (cont’d) history and political economy 31, 66, 72, 73, 74, 75, 76; ILO’s formation 289, 322, 324; international agreements, early 60, 62–3, 65; legislation, early 37–9, 71; legislation, types of 39–59 passim; schooling ratio and suffrage 30, 34 impact of international labor standards 111–12, 154–5, 183–4 and India example and WTO 276–81, 309–10 and WTO 311 Universal Declaration of Human Rights 186 universality 184 Uruguay 34, 35 Utah 41, 43, 45, 50, 52, 54 utility 113, 120, 173 Van Buren, M 56 van Leeuwen, M H D 74 Van, P H 158, 159, 175, 200, 219, 240, 263 Venezuela 35, 208, 263 Vermont 38, 40, 42, 50, 52, 54 Viazzo, P 73, 75, 88 Vidal, J.-P 127–8 Villerme, L R 37 violence 134 Virginia 41, 43, 45, 50, 52, 54 voting (1895–1945) 33–5 wages 10, 112 child labor 158 egalitarian 188 and labor markets 117–21, 126–7 see also bargaining Walker, I 221 Wallerstein, M xiii, on history and political economy 99–104 Washington (state) 38, 41, 43, 45, 50, 51, 52, 54 Weiner, M 74 Weissbach, L S 73 Weitzman, M 174 welfare aggregate 113 and consumption 113 rights 113 welfarist position 113, 117, 184–5, 187 West, E G 76 West Virginia 41, 43, 45, 50, 52, 54 Whaples, R 75 Willoughby, W F 48, 73 Wilson, J D 141, 142, 306 Winters, A 175 Winters, L A xiii, on WTO, role for 309–13 Wisconsin 38, 40, 42, 45, 47–8, 50, 51, 52, 54 Wodon, Q 234, 235 Wolpin, K 197 women see gender differences worker adjustment assistance 157 worker/employer relationships see labor relations working conditions 10 decided by firms 119–22, 167–8 as public good 122–5 rights 134–5, 189–90 World Bank 196, 225, 241 World Values Survey 219–21 World War I 62 World War II 55, 67 WTO (World Trade Organization) 68, 103, 143, 273–325 enforcing ILO agreements 298–302 identifying problems 276–81 institutional features 281–6 options evaluated 302–4 problems assigned to 274, 290–2 “social clause” 140, 156 trade and labor standards 309–13 see also ILO; micro-management; race-to-bottom Wyoming 41, 43, 45, 50 Zambia: child labor 209–10, 212 Zelnik, R E 73, 74 Zilibotti, F 190 Zodrow, G R 141 ... Evolution of Scandinavian Labor Standards Karl-Ove Moene and Michael Wallerstein 99 Part III: The Theory of International Labor Standards Chapter The Impact of International Labor Standards: A Survey... PART II The Evolution of Labor Standards HISTORY AND POLITICAL ECONOMY OF INTERNATIONAL LABOR STANDARDS CHAPTER The History and Political Economy of International Labor Standards Stanley L Engerman... Theory Nirvikar Singh Introduction Delineating Labor Standards Labor Markets and Labor Standards Labor Standards in the Global Economy Who Decides and How? What Happens to the Poor? Conclusion