Peer-reviewed article
Keep Calm and Make a Blacklist: Child Labour and International Trade
Flavia Cifarelli ·
Summary
Written by AI, not yet AICS's view · claude-haiku-4-5-20251001This economics paper examines how US import policies respond to information about child labour in foreign production. Using data from the US Department of Labor's annual lists of goods made with child labour, the researcher finds that countries added to the list experience a 15% decrease in US imports. The effect comes from reduced demand by both US companies and consumers, rather than price changes.
Key points
- Inclusion on the US Department of Labor's child labour list leads to a 15% decrease in US imports from that country
- The reduction is driven by decreased demand from both intermediate input purchasers (businesses) and final consumers
- Business demand reduction is slightly larger than consumer demand reduction
- The effect is not driven by price changes in the traded goods
- The study uses a staggered adoption design to identify causal effects
Limitations
This paper measures trade responses and market effects but does not directly evaluate whether the policy improves child labour conditions or child well-being in affected countries. It does not examine implementation or enforcement of labour standards on the ground.
Abstract
ABSTRACT I investigate how the provision of information regarding the use of child labour in foreign production affects imports, using a staggered adoption design. I exploit a list, published annually by the US Department of Labor, with information on tradable goods produced using child labour in different countries. I find that the inclusion in the list leads to a decrease in US imports from that country equal to 15%, taking into account potential spillover effects. I provide evidence suggesting that this effect is not due to any change in price but is driven by a reduction in both US firms' intermediate input demand and demand by US final consumers, with the former channel being slightly larger.