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Children and young people

Made in dignity: the effects of labelling on child labour

Modelling impact of social labelling on child labour

Authors: C. Duprez; J.-M. Baland
Publisher: European Development Research Network , 2004

This paper analyses the impact of both social and geographical labelling on child labour. A simple model of North-South trade is developed, which show that social labelling will not have any effects in several cases:

  • both free entry in the labelled sector and demand from unconcerned consumers may, in fact, prevent prices, and hence child labour, from varying
  • as for geographical labelling, a simple model, in which the North discriminates between the products made in two different Southern countries, shows that a geographical label necessarily leads to a mixed result when both Southern countries are quite similar
  • In fact, either child labour decreases in the more favoured country, and worldwide child labour increases, or the contrary is the case.

[adapted from author]