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9 Human Capital and International Labor Standards Compliance
Pages 247-270

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From page 247...
... The committee has interpreted its charge to explore the extent to which investments in human capital create capacity within nations to comply more effectively with core international labor standards. This examination is a critical piece of the international labor standards debate because human capital is an important factor in understanding the socioeconomic context in which these standards operate.1 Although human capital and labor standards compliance are much studied topics in and of themselves, the linkage between the two represents a new and unique field of investigation.
From page 248...
... This chapter focuses on the role of human capital as a catalyst in improving observance of core international labor standards. It reviews the empirical work on the measurement of direct and indirect effects of education on labor standards; proposes a broad framework of educational indicators to assess educational attainment in a country; and lays out a research agenda in broad terms to explore the linkages between human capital and labor standards compliance, particularly in developing countries.
From page 249...
... . The concepts presented in this chapter lay the groundwork for future analysis about the role of human capital in labor standards compliance.
From page 250...
... The indirect effects operate with longer time lags. Central to the issue of advancing labor standards compliance is an understanding of the causes of noncompliance and the development of interventions to affect positive outcomes.
From page 251...
... . Their analysis demonstrates that social returns to educational expansion varies by a countrys' income level, with highest social returns in primary education for low-income countries, in secondary education for middle-income countries, and higher education for high-income countries.
From page 252...
... Pack (2003) argues that the low payoff to education in developing countries may be explained by the absence of complementary and simultaneous characteristics, such as local innovation, imports of new foreign technology, and a relatively competitive environment.
From page 253...
... (2000) explores a number of studies that suggest that respect for core labor standards increases economic efficiency and foreign direct investment.
From page 254...
... . education accounts for between seventy and eighty percent of the inequality of labor income [explained by their model of decomposition analysis for sources of income inequality]
From page 255...
... Education and Child Labor While human capital investment may be related to compliance across all the labor standards, the standard with which the linkage is most clear is child labor. Unlike the other standards, human capital investment is already one of the key policy interventions of the International Labour Organization (ILO)
From page 256...
... At the macrolevel, it has been recognized that an outright ban on child labor in developing countries can harm the poor, particularly the working children, because it fails to address the root causes of child labor (Grootaert and Patrinos, 1999; Ravallion and Wodon, 1999)
From page 257...
... In sum, the research and policy interventions discussed above that are designed to help eliminate child labor link human capital issues with the child labor standard. Experts, including those from the ILO, recognize that compliance with child labor legislation cannot be effectively enforced if measures do not take account of human capital investments.
From page 258...
... Education, Democracy, and Empowerment Education is also a tool of emancipation and the key to achieving wide political and social rights, including more representative government, the eradication of child labor, and basic trade union rights. Education makes this possible by empowering people and by creating the skills needed to assess and monitor government actions.
From page 259...
... . The ILO provides training to managers about core labor standards through its collaborative work with the U.N.'s Global Compact.
From page 260...
... . This interaction can help managers develop appropriate systems for compliance with international core labor standards.
From page 261...
... Unlike previous chapters, these data are not direct measures of compliance with core labor standards. Rather, they are presented as complementary factors to the indicators of compliance discussed in previous chapters, to provide socioeconomic contextual information, recognizing that the linkages between human capital and labor standards compliance can go in both directions.3 Children and Youth The population of young people in a country represents its future labor force.
From page 262...
... A well-educated work force is critical for economic and social development and contributes to a countrys' capacity to meet or even exceed labor standards. To measure the degree to which a country is investing in the human capital of adults, the committee proposes three measures.
From page 263...
... Important indicators to consider, as described in previous chapters, include the extent to which governments promote education programs or campaigns related to freedom of association, forced labor, equality, and child labor. RECOMMENDATION AND RESEARCH AGENDA 9-1 The committee recommends research at the micro and macro levels to explore the mutually reinforcing links between the invest ments in education and training labor standards compliance.
From page 264...
... Future Research Agenda Mutually Beneficial Linkages Between Human Capital and Labor Standards This chapter has provided a preliminary analysis of the links between human capital investment and labor standards compliance, focusing primarily on the investment in education and training to improve labor standards compliance. Further analysis is needed from the policy and research perspectives at the micro and macro level.
From page 265...
... The social capital research offers proxy measures related to freedom of association that are useful in theory but require survey data that is culturally relevant. Building on existing indicators and devising new ones will increase the capacity to assess how a countrys' level of investment in human capital affects labor standards compliance.
From page 266...
... . Child labor: Cause, consequence, and cure, with remarks on international labor standards.
From page 267...
... Paper presented at the National Research Council Workshop on Human Capital Investment and International Labor Standards Compliance. Washington, DC.
From page 268...
... Paper prepared for the National Research Council Workshop on Human Capital Investment and In ternational Labor Standards Compliance. Washington, DC.
From page 269...
... Paper presented at the National Research Council Workshop on Human Capital Investment and Interna tional Labor Standards Compliance. Washington, DC.


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