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Trade liberalisation and child labour in China

Author

Listed:
  • Zhao, Liqui

    (Renmin University)

  • Wang, Fei

    (Renmin University)

  • Zhao, Zhong

    (UNU-MERIT, IZA Bonn, and Renmin University)

Abstract
This paper exploits a quasi-natural experiment-the U.S. granting of Permanent Normal Trade Relations (PNTR) to China after China's accession to the World Trade Organization-to examine whether trade liberalisation affects the incidence of child labour in China. PNTR permanently set U.S. duties on Chinese imports at low Normal Trade Relations (NTR) levels and removed the uncertainty associated with annual renewals of China's NTR status. We find that the PNTR was significantly associated with the rising incidence of child labour in China. A one percentage point decrease in average export tariffs raises the odds of child labour by a 1.3 percentage point. The effects are greater for girls, older children, rural children, and children with less-educated parents. The effect of trade liberalisation on the incidence of child labour, however, disappears in the long run, because trade liberalisation can induce exporters to upgrade technology and thus have less demand for unskilled workers.

Suggested Citation

  • Zhao, Liqui & Wang, Fei & Zhao, Zhong, 2016. "Trade liberalisation and child labour in China," MERIT Working Papers 2016-054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2016054
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    File URL: https://unu-merit.nl/publications/wppdf/2016/wp2016-054.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Faqin Lin, 2022. "Agriculture exports, child labor and youth education: Evidence from 68 developing countries," Review of International Economics, Wiley Blackwell, vol. 30(2), pages 490-513, May.
    3. Tang, Can & Zhao, Liqiu & Zhao, Zhong, 2018. "Child labor in China," China Economic Review, Elsevier, vol. 51(C), pages 149-166.
    4. Can Tang & Liqiu Zhao & Zhong Zhao, 2019. "Free Education Helps Combat Child Labor? The Effect of a Free Compulsory Education Reform in Rural China," Working Papers 2019-036, Human Capital and Economic Opportunity Working Group.
    5. Raiber, Eva, 2021. "Anticipated Children and Educational Investment: Evidence from the One-Child Policy in China," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242401, Verein für Socialpolitik / German Economic Association.
    6. Can Tang & Liqiu Zhao & Zhong Zhao, 2020. "Does free education help combat child labor? The effect of a free compulsory education reform in rural China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 601-631, April.
    7. Feng, Jin & Xie, Qiang & Zhang, Xiaohan, 2021. "Trade liberalization and the health of working-age adults: Evidence from China," World Development, Elsevier, vol. 139(C).
    8. Lin, Faqin & Long, Cheryl X., 2020. "The impact of globalization on youth education: Empirical evidence from China's WTO accession," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 820-839.

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    More about this item

    Keywords

    Child labour; Trade liberalisation; Trade policy uncertainty; Difference-in-differences; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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