THE ECONOMIC CONSEQUENCES OF THE ABOLITION OF CHILD LABOR - AN INDIANCASE-STUDY

The abolition of child labour in underdeveloped countries is often hel d to be practically infeasible because it would entail closure of the economic activities which exist only because of access to such labour. Abolition, therefore, would reduce the earnings of poor households wh ose survival strategies, in the context of adult unemployment, depend on incomes derived from the practice. This article examines the child labour-based industry of march production in India, which is concentra ted in the Sivakasi-Sattur matchbelt of Tamil Nadu. It is argued that the abolition of child labour; while reducing the excessive trading ma rgins and changing the irrational locational structure characterising this industry, would in fact result in higher earnings for adult worke rs. However it could have adverse consequences for a section of worker s, which can be addressed with appropriate state action.