Child Labor in Carpet Weaving: Impact of Social Labeling in India and Nepal

Does the labeling of tradable products like carpets which have been produced without child labor increase the welfare of children and their families? This paper presents results of surveys conducted in India and Nepal. The findings suggest a positive link between social labeling and the removal of child laborers for households above the subsistence level. However, for households below the subsistence level, no significant influence has been found.     

Local and Personal Networks in Employment and the Development of Labor Markets: Evidence from the Cut Flower Industry in Ethiopia

We examine the roles of local and personal networks in the employment process and the emergence and development of the labor market in Ethiopia’s growing cut flower industry. Using primary survey data of 320 workers randomly sampled from all 64 farms, we find that workers who were recruited informally using the social ties were paid less than the formally-recruited workers at hiring. However, these workers quickly increased their productivity, and the effect of social ties on wages disappeared over time. Further, we find that the development of labor market for this newly-emerged industry took place particularly within the industrial cluster.