Details
| Original language | English |
|---|---|
| Pages (from-to) | 466-491 |
| Number of pages | 26 |
| Journal | Review of development economics |
| Volume | 10 |
| Issue number | 3 |
| Publication status | Published - 25 Jul 2006 |
| Externally published | Yes |
Abstract
Does labeling products "Child-Labor Free" provide a market-based solution to the pervasive employment of child labor? This paper explores the promise of social labeling in the context of its four oft-noted objectives: child labor employment, consumer information, welfare, and trade linkages, when competition between the North and South is based both on comparative cost advantage, and the use of child labor as a hidden product attribute. We show that (i) social labeling benefits consumers and Southern producers, whereas children and Northern producers are worse off; (ii) trade sanctions on unlabeled products deteriorates Southern terms of trade, but leaves the incidence of child labor strictly unaffected; and (iii) a threat to sanction imports of unlabeled Southern products discourages the South from maintaining a credible social labeling program. We also explore the question of whether social labeling should be viewed as a transitory or a permanent institution in developing economies.
ASJC Scopus subject areas
- Social Sciences(all)
- Geography, Planning and Development
- Social Sciences(all)
- Development
Sustainable Development Goals
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In: Review of development economics, Vol. 10, No. 3, 25.07.2006, p. 466-491.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Guaranteed manufactured without child labor
T2 - The economics of consumer boycotts, social labeling and trade sanctions
AU - Basu, Arnab K.
AU - Chau, Nancy H.
AU - Grote, Ulrike
PY - 2006/7/25
Y1 - 2006/7/25
N2 - Does labeling products "Child-Labor Free" provide a market-based solution to the pervasive employment of child labor? This paper explores the promise of social labeling in the context of its four oft-noted objectives: child labor employment, consumer information, welfare, and trade linkages, when competition between the North and South is based both on comparative cost advantage, and the use of child labor as a hidden product attribute. We show that (i) social labeling benefits consumers and Southern producers, whereas children and Northern producers are worse off; (ii) trade sanctions on unlabeled products deteriorates Southern terms of trade, but leaves the incidence of child labor strictly unaffected; and (iii) a threat to sanction imports of unlabeled Southern products discourages the South from maintaining a credible social labeling program. We also explore the question of whether social labeling should be viewed as a transitory or a permanent institution in developing economies.
AB - Does labeling products "Child-Labor Free" provide a market-based solution to the pervasive employment of child labor? This paper explores the promise of social labeling in the context of its four oft-noted objectives: child labor employment, consumer information, welfare, and trade linkages, when competition between the North and South is based both on comparative cost advantage, and the use of child labor as a hidden product attribute. We show that (i) social labeling benefits consumers and Southern producers, whereas children and Northern producers are worse off; (ii) trade sanctions on unlabeled products deteriorates Southern terms of trade, but leaves the incidence of child labor strictly unaffected; and (iii) a threat to sanction imports of unlabeled Southern products discourages the South from maintaining a credible social labeling program. We also explore the question of whether social labeling should be viewed as a transitory or a permanent institution in developing economies.
UR - http://www.scopus.com/inward/record.url?scp=33746448287&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9361.2006.00335.x
DO - 10.1111/j.1467-9361.2006.00335.x
M3 - Article
AN - SCOPUS:33746448287
VL - 10
SP - 466
EP - 491
JO - Review of development economics
JF - Review of development economics
SN - 1363-6669
IS - 3
ER -