An Essay on Economic Efficiency and Core Labour Standards

An analysis examines whether the proposed core labor standards can be expected to have neutral or positive economic-efficiency effects in an economy, regardless of the level of development of the economy. The results of the analysis are summarized by the following 3 statements: 1. The neutral to positive efficiency effects of the prohibitions of forced labor and discrimination are not effected by the development level of an economy. 2. Collective-bargaining and freedom-of-association rights per se have no negative efficiency implications, regardless of an economy's development level. 3. Any economically efficiency policy to deal with the exploitation of children in employment depends on the level of development of the economy in which the affected children work and live.