I LO - I PEC In-depth analysis of child labour and education in Panama. San José, Costa Rica, International Labour Office, 2004.

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1 Copyright International Labour Organization 2004 First published, 2004 Public ations of the International Labour Offic e enjoy c opyright under proc ol 2 of the Universal Copyright Convention. Nevertheless, short exc erpts from them may be reproduc ed without authorization, on c ondition that the sourc e is indic ated. For rights of reproduc tion or translation, applic ation should be made the Public ations Bureau (Rights and Permissions). International Labour Offic e, CH-1211, Geneva 22, Switzerland. The ILO welc omes suc h applic ations. I LO - I PEC In-depth analysis of child labour and education in Panama. San José, Costa Rica, International Labour Office, Child labour, Economic conditions, Social conditions, Education, Panama I SBN: Web version: ILO Cataloguing in Publication Data The designations employed, whic h are in c onformity with United Nations prac tic e, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Offic e c onc erning the legal status of any c ountry, area or terriry or of its authorities, or c onc erning the delimitation of its frontiers. The responsibility for opinions expressed in signed artic les, studies and other c ontributions rests solely with their authors, and public ation does not c onstitute an endorsement by the ILO of the opinions expressed in them. Referenc e names of firms, c ommerc ial produc ts and proc esses does not imply their endorsement by the International Labour Offic e, and any failure mention a partic ular firm, c ommerc ial produc t or proc ess is not a sign of disapproval. Please visit our websites: r and / r

2 GENERAL AUDIT OFFICE OF THE REPUBLIC (CONTRALORÍA GENERAL DE LA REPÚBLICA,CGR) DIRECTORATE OF STATISTICS AND CENSUS (DIRECCIÓN DE ESTADÍSTICA Y CENSO, DEC) STATISTICAL INFORMATION AND MONITORING PROGRAMME ON CHILD LABOUR (SIMPOC) INTERNATIONAL PROGRAMME ONTHE ELIMINATION OF CHILD LABOUR (IPEC) INTERNATIONAL LABOUR OFFICE (ILO) In-depth analysis of child labour and education in Panama Prepared by: Margarita Aquino Cornejo May 2003 ii

3 Edition International Labour Offic e (ILO) International Program for the Eradic ation of Child Labour (IPEC) Statistic al Information and Moniring Program on Child Labour (SIMPOC) Coordination and General Supervision Angela Martins Oliveira International Labour Offic e (ILO) International Program for the Eradic ation of Child Labour (IPEC) Statistic al Information and Moniring Program on Child Labour (SIMPOC) National Technical Coordination Yadira del C. Adames Population and Housing Sec tion General Audit Offic e Report by: Margarita Aquino Cornejo Technical Support and Review Albinia Quintero B., Survey Supervisor, DEC/ CGR Elba Arosemena de Quintero, Statistic ian, DEC/ CGE Emerson A. Cordoba M., Computer Programmer, DEC/ CGR Rita Y. Ríos F., Statistic s Assistant, DEC/ CGR Yadira del C. Adames, Head of the Population and Housing Sec tion, DEC/ CGR Angela Martins Oliveira, Senior statistic ian, ILO/ IPEC-SIMPOC Astrid Marsc hatz, Data Analysis Expert, ILO/ IPEC-SIMPOC Funding for this ILO public ation was provided by the United States Department of Labor. This public ation does not nec essarily reflec t the views or polic ies of the United States Department of Labor, nor does mention of trade names, c ommerc ial produc ts, or organizations imply endorsement by the United States Government. iii

4 Foreword With the International Programme for Elimination of Child Labour, the International Labour Offic e (ILO) has c onverted a progressive proc ess for the prevention and elimination of c hild labour in a universal c ause. Child labour is a globally widespread c omplex and many-fac eted phenomenon. Furthermore, a lac k of reliable information and quantitative analysis makes it even more diffic ult find effec tive ways of c onfronting the problem. For many years, the lac k of information on its c auses, magnitude, nature and c onsequenc es has been a c onsiderable obstac le the implementation of effec tive ac tions c onfront, halt and eliminate this phenomenon that affec ts millions of boys, girls and adolesc ents throughout the world. Sinc e 1988, the International Programme for Elimination of Child Labour has administered the Statistic al Information and Moniring Programme on Child Labour (SIMPOC), in order assist the partic ipating c ountries generate c ross-c ountry c omparable data on c hild labour. SIMPOC s global objec tive is use Household Surveys generate quantitative data on sc hool ac tivities, and on the c hildren s ec onomic and non-ec onomic ac tivities outside sc hool, in addition c ollec ting qualitative data and establishing databases c ontaining information on c hild labour. These data were the basis for different studies prepared in the partic ipating c ountries. The c ollec tion of reliable data and their analysis provides support for development of effec tive interventions against c hildhood labour. With the data gathered in the different c ountries and the studies drafted based on these data, we hope fac ilitate development, implementation, and moniring of polic ies and programmes c ounter this phenomenon, as well as promoting soc ial attitudes in favour of sustainable prevention and progressive eradic ation of c hild labour. I am c ertain that the information presented in this study on c hild labour in Panama will c ontribute improve understanding and inc rease sensitivity wards the situation of working boys, girls and adolesc ents and will allow better strategies be drafted c ombat this phenomenon. For eac h one of the partic ipating c ountries, the availability of a panorama of ever-greater c larity regarding this phenomenon will undoubtedly lead a more effec tive proc ess and a shortened path ac hieving a world without c hild labour. Guillermo Dema Sub-Regional Coordinar ILO/ IPEC Programme for Central Americ a, Panama, Dominic an Republic, Haiti and Mexic o iv

5 Preface This report originated from the need provide information on the c urrent c hild labour situation in Panama, and desc ribes in detail the methodologic al framework used and the findings from the data analysed. Spec ial referenc e is made the magnitude, nature, and working c onditions, as well as c auses and c onsequenc es on c hildren s health, educ ation, and physic al development. This report is the result from an agreement subsc ribed between the International Labour Organization (ILO), within the ac tion plan of the International Programme on the Elimination of Child Labour (IPEC), and the General Audit Offic e of the Republic (Contraloría General de la Repúblic a), whic h is in c harge of regulating and direc ting national statistic s. The Ministry of Labour and Labour Development c ollaborated on this endeavour. IPEC has the objec tive of working for the prevention and gradual eradic ation of c hild labour, emphasising the prompt elimination of the worst forms of c hild labour. These inc lude, among others, forc ed labour, debt bondage, c ommerc ial sexual exploitation, c hild traffic king, use of c hildren in armed c onflic ts, and work that due its nature or the c onditions in whic h it is c arried out endangers c hildren s physic al, mental, and/ or moral wellbeing. In order ac c omplish this objec tive, IPEC provides tec hnic al and financ ial assistanc e c ountries in the c reation of national strategies involving different soc ial ac rs, and in sensitisation and awareness-raising efforts regarding the c auses and c onsequenc es of c hild labour. It also provides direc t attention working c hildren through ac tion programs aimed at the prevention, rehabilitation, and removal of c hildren from labour. The analysis presented herein has been possible as a result of c arrying out the Child Labour Survey in 2000 and the c ollec tion of qualitative information about this issue. This information provides a larger and better understanding of the subjec t, as well as insights for the formulation of polic ies and programmes aimed at fighting c hild labour. The phases that prec eded the preparation of this doc ument were developed with the tec hnic al assistanc e of ILO/ IPEC s Statistic al Information and Moniring Programme on Child Labour (SIMPOC), and the funding of the Department of Labor of the United States of Americ a. v

6 Table of contents Page CHAPTER I. INTRODUCTION 1 CHAPTER II. CHILD LABOUR SITUATION 6 II.1 Child labour forc e 6 II.2 Employed c hild labour forc e 8 II.2.1 Oc c upations 9 II Oc c upations ac c ording the wellbeing level they provide 9 II Oc c upational struc ture by ac tivity and oc c upation c ategory 11 CHAPTER III. DEMOGRAPHIC AND SOCIOECONOMIC SITUATION OF THE HOUSEHOLS WHERE WORKING CHILDREN LIVE 14 III.1 Demographic c harac teristic s 14 III.1.1 Volume, household head, and distribution 14 III.1.2 Marital status 14 III.1.3 Average number of people per household 14 III.1.4 Average number of c hildren per household 15 III.1.5 Other household members (Kinship) 16 III.1.6 Population between 5 and 17 years old 16 III.1.7 Household heads between 15 and 17 years old 16 III.1.8 Working c hildren 17 III.1.9 Unemployed c hildren 17 III.1.10 Conc lusion 17 III.2 Household labour, educ ational, and inc ome c harac teristic s 17 III.2.1 Employed population 17 III.2.2 Monthly inc ome average and educ ational level 19 III.2.3 Monthly inc ome strata 21 CHAPTER IV. EDUCATIONAL SITUATION OF WORKING CHILDREN 26 IV.1 Children s sc hool attendanc e 26 IV.2 Working c hildren s sc hool attendanc e 27 IV.2.1 Contribution the household and reasons for working 29 IV.2.2 Monthly inc ome average ac c ording household type 30 IV.2.3 Working c onditions 31 IV.3 Effec ts of labour on working c hildren s ac ademic ac hievement 32 IV.3.1 Sc hool level reac hed and average sc hooling 32 IV.3.2 Sc hool lagging 33 IV.3.3 Other indic ars of sc hool lagging 35 IV.4 Educ ational environment at home 34 CHAPTER V. FINAL REMARKS 45 BIBLIOGRAPHY 47 vi

7 List of tables Chapter II. Child Labour Situation Table II.1 Panama. Child labour forc e, by sex and age group, by area and provinc e (in %) Table II.2 Panama. Employment rate of c hildren, by sex and age group, by area and provinc e (in %) Table II.3 Panama. Distribution of the working c hildren and of working population 18 and older, by oc c upation group assoc iated wellbeing level, by area, provinc e and sex Table II.4 Panama. Perc ent distribution of working c hildren in the main industries and status in employment, by area and sex Chapter III. Demographic and Socioeconomic Situation of Households Where Working Children Live Table III.1 Panama. Demographic c harac teristic s of households with and without working c hildren, by area, provinc e, and sex of household head Table III.2 Panama. Employment indic ars of members in household, by household type, by area, provinc e, and sex of household head Table III.3 Panama. Average monthly inc ome of the household head and the employed population by type of household, ac c ording area, provinc e, and sex (in Balboas) Table III.4. Panama. Average monthly inc ome of the employed population by type of household and sex, by area and educ ational level (in Balboas) Table III.5. Panama. Perc ent distribution of employed population by type of household and monthly inc ome stratum, by area and sex Table III.6. Panama. Perc ent of working c hildren in tal employed population age 5 and older in households of working c hildren, by monthly inc ome stratum, by area and sex (in %) Chapter IV. Educational situation of working children Table IV.1. Panama. Distribution of working c hildren by sc hool attendanc e and sex, by area and provinc e Table IV.2. Panama. Average monthly inc ome and expenses of household head, by type of household and c hildren s work status and sc hool attendanc e, by area and sex of the household head Table IV.3. Panama. Highest level of sc hooling ac hieved by c hildren by work status, by area, provinc e, and sex (in %) Table IV.4. Panama. Children s sc hool lag by work status, by area, provinc e, and sex (in %) Table IV.5. Panama. Indic ars of c hildren s educ ational lag by work status, by area, provinc e, and sex (in %) Table IV.6. Panama. Distribution of household heads in household with working c hildren by their and working c hildren s sc hooling level, by area and provinc e (in %) Table IV.7. Panama. Average sc hooling of working c hildren and household heads by type of household and sex, by area and provinc e Table IV. 8. Panama. Distribution of the working population age 5 and older in households of working c hildren, by dec lared everage monthly inc ome stratum, by highest level of sc hooling ac hieved (in Balboas) Table IV. 9. Panama. Distribution of working c hildren by dec lared average monthly inc ome stratum, by highest level of sc hooling ac hieved (in Balboas) Table IV. 10. Panama. Distribution of working population age 5 and older in households without working c hildren by dec lared average monthly inc ome stratum, by highest level of sc hooling ac hieved (in Balboas) vii

8 CHAPTER I INTRODUCTION Today, it is undeniable that there is a c lose and rec iproc al link between educ ation and labour insertion. The inc reased c ommerc ial and financ ial openness more c ompetitive and less regulated markets with heterogeneous and c hanging demands, and an inc reasing integration of tec hnology make produc tion more effic ient and diversified, have bec ome even more dynamic in the c urrent c ontext of international and national ec onomic transformations. Without better trained human resourc es fac e the requirements of this produc tion restruc turing, this proc ess shall not have a suc c essful outc ome. Within this c ontext, the higher the degree of qualific ations of the labour forc e, the greater its opportunities of engaging in higher quality oc c upations that provide greater benefits. This means that educ ation is a c ruc ial element in the c ountry s ec onomic, soc ial, and politic al development. The investment in more and better educ ation as well as greater ac c ess educ ation in a framework of equality sets solid bases open up the opportunities for a better living standard for the whole population in a soc iety governed under equality, justic e, and soc ial inc lusion. In this c ontext, thinking of the soc ial c ommunity, several questions arise: How should the relation between c hildren s partic ipation in the work forc e and educ ation be interpreted? What are the present and future life-long opportunities posed them by entering the labour forc e at an early age? Does their presenc e in the labour market respond the interests of a democ ratic and fair soc iety that pursues the ac hievement of real human sustainable development? The issue of c hild labour is not a new phenomenon. Until rec ent dec ades, it was mainly seen as a natural phenomenon assoc iated the anc estral c ultural formation and the needs of families. The International Labour Offic e (ILO), sinc e its foundation, has ac tively sought abolish c hild labour and regulate it properly in order not violate c hildren s rights. In this huge task, the ILO has joined efforts with other international organizations with different mandates, that have c ontributed visualising the problem and addressing it with a c omprehensive approac h at international and national levels. Among these efforts, the international summits and c onventions that emerged in the nineties as an initiative of the United Nations may be emphasised. The Republic of Panama, in addition the c ommitment assumed by the State insofar as the Universal Dec laration of Human Rights, has adopted the Convention on the Eradic ation of All Forms of Disc rimination against (Law No. 4 of January 29, 1999), Convention No. 138 on the Minimum Age for Admission Employment (Law 17 of June 15, 2000), and Convention No. 182 on the Worst Forms of Child Labour and Immediate Ac tion for their Elimination (Law 18 of June 15, 2000). The last two c onventions were adopted by the General Conferenc e of the International Labour Organization. In the c ountry, the legal and regulary framework dealing with c hild labour is c omprised by the Politic al Constitution, the Labour Code, and the Family Code. The national institution that is most direc tly involved in dealing with this problem is the Ministry of Labour and Labour Development (MITRADEL), whic h c oordinates the Committee for the Eradic ation of Child Labour and Protec tion of Working Children, c omprised by seventeen 1

9 governmental, business, labour, and c ivil soc iety entities. ILO partic ipates in this Committee as advisor gether with other international organisms. It is worth mentioning that the c reation in 1997 of the Ministry of the Youth,, Children, and Family (MINJUMNFA) c onferred spec ial importanc e the differentiated c are of population in vulnerable situation, of whic h c hildren and adolesc ents that partic ipate in the labour market are part. Other partic ipating institutions are the Offic e of the Atrney General, the Ministry of the Presidenc y, the Ministry of Educ ation, the Ministry of Health, and the Ministry of Ec onomy and Financ es. Among the dec entralised entities are the Institute for the Formation and Development of Human Resourc es (IFARHU), the Panamanian Institute of Spec ial Habilitation (IPHE), and the National Institute of Professional Formation (INAFORP). At the level of soc ial polic ies and plans that in one way or another deal with ac tions related the prevention and c are of c hild labour problems it is worth mentioning the Soc ial Agenda, the Soc ial Development Polic y and Strategy, the Educ ational Agenda, the Health Polic y, and the Panama-UNICEF Operations Master Plan for the period, among others. In addition, in the c ountry, c hildren have the possibility of joining the regular educ ational system. Ac c ording the Basic Law of Educ ation in forc e, general basic educ ation is universal, free, and c ompulsory for 11 years up the age of 14, while middle sc hool is free and diversified and enc ompasses the ages of Soc ial public expense in educ ation in the c ountry is c harac terised by being high; in the year 2000, it represented c lose 29% of the tal soc ial public expenses. In addition, the c ontribution of the gross domestic produc t (GDP) this sec r was 5.7% 1 /. For this same year, the c ost per student in presc hool and elementary educ ation was estimated in B/ and in B/ / in middle sc hool 3 /. Among the major programs exec uted in the c ountry by different governmental institutions mainly by the Ministry of Educ ation expand educ ational c overage, enhanc e its quality, and improve the development and permanenc e in sc hool, we c an mention the following: Basic Educ ation; Middle Educ ation; Educ ational Development; Construc tion, Rehabilitation, and Maintenanc e of Ac ademic and Student Centres; Sc hool Proc urement; Mother Mother; Initial Educ ation Family and Community Centres (CEFACEI); Sc hool Nutrition; Spec ial Educ ation; Sc holarships and Sc hool Subsidies; Care and Training Centres for Indigenous and Peasant Children; and Labour Training in Fixed Centres, Companies, and Mobile Ac tions 4 /. Several c ivil soc iety organizations c arry out ac tions in favor of the protec tion and c are of Panamanian c hildren. Among the organizations that foc us their attention on prevention, protec tion, and rehabilitation ac tions in favor of working c hildren, mainly those found on the streets, spec ial attention should be given Casa Esperanza with its ac tive and direc t c omprehensive model and emphasis on educ ation. Other institutions inc lude the Panamanian Red Cross, Fundac ión Pro Niños del Darién, Comité Ec uménic o Fe y Alegría, Patrona de la Ciudad del Niño, Fundac ión Profamilia, and Asoc iac ión de Servic io de Paz y Justic ia. The investment in educ ation is manifested in the favorable indic ars presented by the c ountry. It is worth mentioning that in the period, in the elementary level, the gross enrollment 1 / Ac c ording figures of the Direc rates of the Nation s Budget and Soc ial Polic ies of the Ministry of Ec onomy and Financ e. 2 / The balboa (B/.) is equivalent the dollar of the United States of Americ a 3 / General Audit Offic e of the Republic, Statistic s and Census Bureau, Panama en Figures years , Panama, November / Ministry of Ec onomy and Financ e (MEF), Direc rate of Soc ial Polic ies (DPS), Soc ial Development Polic ies and Strategies Report on the Exec ution of the Operational Plan for the year 2000, Panama, August

10 rate was 109.5% and the net sc hooling rate 5 / was 97.7%. These indic ars in partic ular indic ate that the c ountry is c lose having educ ation be universal, whic h allows the system be more foc used on the groups that have not yet been c ared for and improve the performanc e and quality of educ ation 6 /. In this c ontext, we should ask: Why are there c hildren who do not go sc hool and enter the labour market? Why are there boys and girls with low sc hool ac hievement? Why are there c hildren who lag in sc hool? Why are there c hildren who drop out of the sc hool system? Ac c ording the Living Conditions Survey of 1997, 37.3% of the c ountry s population is poor and 18.8% live in extreme poverty 7 /. The ratio of people living in poverty c orresponds 15.3% in the urban areas, 58.7% in non-indigenous rural areas, and 95.4% in indigenous areas. This means that 50.4% of the population between the ages of 5 and 9 and 45.8% of those between 10 and 14 are poor. The degree of inequality or c onc entration in the c onsumption or inc ome distribution in the population, measured by the Gini c oeffic ient 8 /, is also of c onc ern in the c ountry: 0.49 for c onsumption and 0.60 for inc ome. This is due in part the questions posed expressing inequality, disparity, and soc ial exc lusion. It also helps understand but not justify that there are still groups of c itizens that perc eive c hild labour only as a solution poverty and not as a problem that direc tly affec ts the educ ational formation of working c hildren. Child labour in Panama is a reality. Its magnitude, whether large or small, does not justify its existenc e. Measuring the problem only in quantitative terms simply c ontributes making it invisible and taking the importanc e away from its qualitative dimensions that are even more relevant. Behind the c old numbers that indic ate high or low lie those qualitative dimensions of human life. We have make sense out of the numbers and see the reality that maybe, out of c onvenienc e, we do not want see and whic h legitimises it implic itly and silently. Child labour is a problem and not a solution poverty. Of great c onc ern, for some; a simple manifestation of an anc estral prac tic e or struggle for survival, for others; c hild labour has ac quired importanc e in the region, under c irc umstanc es that persist or even inc rease adults unemployment and underemployment. However, it has only been rec ently that it has bec ome a researc h and national polic y issue; and not always is there awareness of its implic ations (whic h, from our point of view, are very negative) for the c hild engaged in it, his/ her relatives, and soc iety as a whole. 9 /. 5 / The Gross Enrollment (or Sc hooling) Rate is the tal number of students enrolled in elementary sc hool regardless of their age expressed as a perc entage of the population offic ially in elementary sc hool in a spec ific year. The Net Enrollment (or Sc hooling) Rate is the registration in elementary sc hool of the group that offic ially has the age attend elementary sc hool, expressed as a perc entage of the c orresponding population. Taken from Educ ation for All: Evaluation in 2000, Tec hnic al Guidelines, International Consultative Forum on Educ ation for All c omprised by UNESCO, UNFPA, UNDP, UNICEF, and the World Bank. 6 / Ministry of Educ ation, National Direc rate of Educ ational Planning, Educ ational Statistic s 2000, Panama, / MEF, DPS. Profile and Charac teristic s of the Poor in Panama, Living Conditions Survey 1997, Panama, Marc h / The Gini c oeffic ient is one of the best known statistic al measures of inequality in the distribution of any resourc e (inc ome, land, wealth, etc.) whic h implies that different individuals (households, soc ial groups, etc.) have different amount of that resourc e. The value of this c oeffic ient varies from 0 (equal distribution) 1 (unequal distribution); that is, the c loser it gets 1, the higher the inequality. 9 / International Labor Organization (ILO). Child Labor Situation in Latin Americ a, ILO, Lima, May

11 In order learn about c hild labour objec tively, its magnitude, c harac teristic s, c auses and c onsequenc es, in partic ular, its c ompatibility with educ ation, it is nec essary have ac c urate and detailed statistic al information qualify and make this soc ial problem visible. The information and its subsequent analysis allows for the design, implementation, and evaluation of polic ies, programmes, and ac tions using c riteria related priority, relevanc e, equity, effec tiveness, and effic ienc y. ILO, interested in c omplying with its mandate fight against c hild labour, c reated the International Programme on the Elimination of Child Labour (IPEC) that advises and supports national initiatives deal with this problem. In order improve the knowledge about the problem and strengthen national c apac ities, IPEC has helped different entities in the c ountry c ompile the relevant information through the Statistic al Information and Moniring Programme on Child Labour (SIMPOC). The most c omplete information sourc e that it has supported is the Child Labour Survey, that provides reliable data whic h, as a whole and individually, are valuable formulate programmes that progressively eradic ate c hild labour, by inc orporating prevention, resc ue, rehabilitation, and protec tion ac tivities as well as by determining priority ac tions regarding their right educ ation. The Child Labour Survey c arried out in Oc ber 2000 by the General Audit Offic e of the Republic, through the Direc rate of Statistic s and Census 10 / fills the void of the fragmented and partial information that existed before 11 /. Contrary former surveys, for the first time, the study inc luded labour among c hildren under 10 years old 12 /. The availability of this statistic al wealth undoubtedly allows for the translation and implementation in c onc rete ac tions of the public c ommitment eliminate c hild labour. This may be done under the understanding, as stated by Amartya Sen that: the quality of c hildhood is important not only bec ause of what happens during c hildhood but also bec ause of the c hild s future life and that sinc e we not only value living well and satisfac rily, but we also apprec iate having c ontrol over our own lives, the quality of life has be judged not just by the way in whic h we end up living, but also by the opportunities we have. 13 / With its mic ro-soc ial c harac terisation, we expec t establish that household poverty is a c ause of c hild labour, but not the only one. The lac ks of these families have multiple c auses that are very c omplex and involve more than the ec onomic, oc c upational, educ ational, c ultural, and intergenerational aspec ts. Child labour is c aused by a c ombination of c auses and relations turning it in a serious c onsequenc e whic h, like a spiral, also has its own effec ts. Some of these effec ts are the loss of ac ademic ac hievement and the reproduc tion of poverty. Under this perspec tive, c hild labour has an impac t on soc iety s development as a whole. In this sense, this report aims at analysing the information derived from the survey making emphasis on the c ausality relations of c hild labour and educ ational opportunities. 10 / Ac c ording the Constitution, the General Audit Offic e has the power direc t and c reate the national statistic s, whic h it does through the Direc rate of Statistic s and Census as a c oordinating entity of the whole national statistic al system. 11 / It is worth mentioning that in the c ountry there is information about c hild laborers on studies undertaken by the governmental, ac ademic, and non-governmental entities; yet, this information is related spec ific issues and has different c overage levels. 12 / It is nec essary c larify that sinc e the sample framework of the survey inc luded households with c hildren between 5 and 17 years old, it did not inc lude information about street c hildren who are engaged in hazardous, illic it, and abusive oc c upations that endanger their dignity and safety. 13 / Amartya Sen. Investing in Childhood: Its Role in Development, retrieved from http/ / 4

12 Within this framework, it is c onvenient point out at least three methodologic al referents that guide the analysis. First, the foc us is on the household c onditions in whic h working c hildren live. The interest is c entered on the partic ipation of c hildren that were ac tually working at the time of the survey, their main oc c upations, and their working c onditions, the remuneration rec eived, and espec ially, the possibilities of rec onc iling work and study, its effec ts, and the influenc e of their homes in their ac hievements or educ ational losses. A sec ond aspec t is position the c omplex frame of fac rs that influenc e on the work-sc hool relation based on c omparisons between employed and unemployed c hildren and adolesc ents and between different soc io-ec onomic groups ac c ording the presenc e or absenc e of working c hildren in the households. This allowed analysing empiric al relations on these issues. The third referent is that the tality of the information is segregated spatially in nine provinc es and the indigenous areas and in urban and rural areas. However, in making c omparisons by areas and taking in ac c ount the ethnic partic ularities, the indigenous areas are presented separately even when the information related them is inc luded in the rural areas division as well. The five c hapters that c omprise this report share a c ommon thematic struc ture. This introduc tion c ontextualizes the overall importanc e of analysing the c hild labour situation from the perspec tive of its relation with other fac rs that influenc e on its link with labour. The sec ond c hapter explains who the c hild workers are, their number, their loc ation, and their most c ommon oc c upations. The third c hapter identifies the demographic, labour, ec onomic, and educ ational c harac teristic s of their households, c omparing their situation with homes in whic h there are no working c hildren. The fourth c hapter, whic h is the bac kbone of the report, analyses their educ ational c harac teristic s and the differenc es among working c hildren depending on whether or not they are attending sc hool; it c ompares indic ars suc h as sc hool lag; observes the educ ational gain obtained at home relating it their ec onomic support and the inc ome other household members rec eive. This c hapter has the purpose of knowing the relationship between sc hooling and opportunities, and determining if they reproduc e the educ ational defic it of their homes; it also c ompares them with homes without working c hildren in order determine differenc es regarding soc ial exc lusion and inequality. Finally, the fifth c hapter inc ludes some final remarks related the information analysed that c ould be used for reflec ting on the approac h the c hild labour problem and the c reation of soc ially inc lusive polic ies. 5

13 CHAPTER II CHILDREN S WORK SITUATION The Child Labour Survey (CLS) registered 755,032 persons between 5 and 17 years old, more than half of whom are men. This group represents 37.8% of the tal population in the households with c hildren in that age group. Of the tality of the population, these c hildren c omprise 36.5% in urban areas, 39.8% in rural areas, and 40.6% in indigenous areas. By provinc e, the number of boys and girls between 5 and 17 years old is higher in Panama and Chiriquí and lower in Darién, Los Sans, and Boc as del Toro. By age group, in order, 39.9% are between 5 and 9, 39.3% are between 10 and 14, and 20.8% are between 15 and 17. In the analysis of work ac tivities, this population group between 5 and 17 years old is the group that is potentially exposed engaging partially or tally in ec onomic ac tivities in detriment of the educ ational, soc ial, and rec reational opportunities that provide them with the appropriate soc ialisation and enjoyment of their rights. By ac tivity status, the group inc ludes 57,524 boys and girls either working or searc hing employment (47,976 working and 9,548 looking for work; the latter are divided in 5,824 laid off and 3,724 aspirants) and of 697,508 ec onomic ally inac tive c hildren. II.1 CHILD LABOUR FORCE The ec onomic ally ac tive population over 5 years of age and older 14 / inc luded in the survey amount 729,299 people, with a spec ific ac tivity rate 15 / of 41.2%, that inc reases 66.2% for the labour forc er of 18 and older. The c hild labour forc e with an ac tivity rate of 7.6% represents 7.9% of the tality of the labour forc e. The quantitative dimensions of the c hild labour forc e partic ipation are relatively low. To interpret them c orrec tly, the c riteria used should be different from those applied the adult population sinc e the quantified information also depends on the qualitative dimensions of human life. Its only presenc e in the labour supply reflec ts the pressures, usually ec onomic, that forc e them enter the labour forc e early. This is a population that bec ause of its age and the exerc ise of its rights should be fully devoted educ ational ac tivities as a means develop its c apabilities and relations soc iety, and not through an ec onomic ac tivity that attempts against its physic al, mental, c ognitive, and soc ial integrity. The partic ipation of c hildren in the labour forc e tends inc rease as they get older, that is, in desc ending order they are distributed as follows: 62.9% of them are years old, 32.3% are years old, and 4.8% 5 9 years old. Their ac tivity rate also inc reases with age; the rate for the adolesc ents is almost 4 times than that of the age group, and between the latter and the group between 5 and 9 years old it is 7 times larger (see Table II.1). partic ipate more than women, and their ac tivity rate is higher. This applies all age groups analysed. 14 / Traditionally, the Direc rate of Statistic s and Census (DEC) of the General Audit Offic e of the Republic (CGR) defines the ec onomic ally ac tive population starting at 15 years old and older. For the purposes of the analysis of the population under study, it inc ludes also the population between 5 and 14 researc hed in the survey. 15 / The partic ipation or ac tivity rate that is used refers the spec ific rate; that is, the ratio of the ec onomic ally ac tive population as c ompared with the tality of the population by age group or sex it deals with. 6

14 Table II.1 Panama. Child labour force, by sex and age group, by area and province (in %) Participation rate by sex Participation rate by age group (years) Area and (for each 100 persons) Children Adolescents province Total Total Urban Rural Indigenous Boc as del Toro Coc lé Colón Chiriquí Darién Herrera Los Sans Panama Veraguas Sourc e: CLS, By area and provinc e, girls between 5 and 9 years old do not partic ipate in the labour market, and if they do, their partic ipation is signific antly lower than for boys, whic h is explained by their higher ratio in the ec onomic ally inac tive group and slightly higher ratio of sc hool attendanc e. It is important remember that they partic ipate ac tively in domestic c hores at home so that adults may go work; this c ould prevent them from attending sc hool. When the distribution by area of the c hild labour forc e and the labour forc e of all those over 5 years old are c ompared, it is notic ed that the former is mainly rural, whereas the latter is maily urban. This c ontrast may mean that, in addition c ultural and ec onomic fac rs, in rural areas c hildren are also pressured enter the labour market in order substitute those wage earners older than 18 who migrate urban areas join the labour forc e in that area. Consequently, c hildren s partic ipation rate in rural areas reac hes two-digit figures. Regarding the population in indigenous areas, the tality is c onsidered rural; therefore, its labour forc e is also rural and presents the highest ac tivity rate by area. Of every hundred boys and girls who c omprise the c hild labour forc e, 26 partic ipants are between 5 and 13 years old and 37 are between 5 and 14 years old. This means that the minimum legal age enter the labour market is not c omplied with and that there is lenienc y regarding their entry in the labour market under c ertain c onditions. The analysis of its struc ture sheds a profile of those who partic ipate in the labour market. First, their presenc e in the labour supply where they c ompete with adults under disadvantageous c irc umstanc es shows the prec arious soc ioec onomic situation and c ultural habits of their households, their lower ac c ess full-time sc hool attendanc e due household-related and system-related reasons, as well as the not very effec tive applic ation, on the one hand, of the several international c onventions ratified by the c ountry whic h c onfers them a right get an educ ation and be protec ted against ec onomic exploitation, and on the other, of the national legal instruments that limit their inc orporation the labour market. Sec ond, boys enter the labour market more often, as it happens with the labour forc e of 5 years of age or more in general. This indic ates that ac c ording their sex, they reproduc e the same labour insertion dynamic s as the overall population. Third, it seems that the soc ioec onomic situation of rural households (inc luding indigenous people) exerts a higher pressure on c hildren enter the labour market. 7

15 The survey registered 9,548 c hildren who did not work but were searc hing for work, most of whom are men. However, it is among women where the highest job-seeking rate is be found. By area, the highest rate is in the urban area. By age group, adolesc ents have the highest rate whic h generates soc ial risks due the greater c hanc e for them enter or re-enter the labour forc e by devoting themselves dangerous, illic it, abusive, or detrimental oc c upations that attempt against their dignity, freedom, safety, physic al and mental health, and overall wellbeing. These ac tivities inc lude c ommerc ial sexual exploitation, drug traffic king, and theft, among other harmful ac tivities. II.2 EMPLOYED CHILD LABOUR FORCE At the time of the survey a tal of 47,976 boys and girls were working. Most of them were male - distribution that stays the same by areas and provinc es. Most of them are found in rural areas. In all areas, the distribution by sex is very similar. Eight out of every ten c hildren in the labour forc e are working. In rural and indigenous areas and in the provinc es of Darién, Los Sans, Veraguas, and Boc as del Toro the employment rates surpass 90% (see Table II.2). The 5 9 and age groups have higher rates than the average, while the age group, despite c omprising almost 60% of the employed c hildren, has a lower rate. However, the fac t that more than three quarters are employed implies that if they do not study or have dropped out, it would be diffic ult for them enter the educ ational system. Three of every ten working c hildren are under 14 years of age. Most are boys (84.4%) and are mostly found in rural areas (78.1%). Their employment rate is high (95%), situation that verifies the lac k of c omplianc e with ILO c onventions ratified regarding the minimum age enter the labour market and the legal regulations that authorise labour as of 14 years of age under spec ial c onditions. The high employment rates in the 5 9 age group interferes, among other aspec ts, with these c hildren s c ognitive, psyc hologic al, and physic al development as these are ages in whic h playing and learning from the environment are an integral part of their formation. It also interferes with their sc hool attendanc e whic h has be c onstant, with the timely entranc e the educ ational system and good performanc e, and with their possibilities reac h a basic educ ational level with a lower age lag. The lac ks in the educ ational system regarding the presc hool supply and infrastruc ture in hard--reac h plac es promote their partic ipation in the labour market. Table II.2 Panama. Employment rate of children, by sex and age group, by area and province (in %) Employment rate by sex and age group (years) Area and province Employment rate by sex Total Total Urban Rural Indigenous Boc as del Toro Coc lé Colón Chiriquí Darién Herrera Los Sans Panama Veraguas No c ases are rec orded. Sourc e: CLS,

16 More than half started working between the ages of 10 and 14, whic h is the range that prevails in the different areas and provinc es. The beginning of the working life at younger ages (4 9) is high in indigenous areas and in the provinc es of Boc as del Toro and Veraguas. The earlier they enter the labour market, the higher are their possibilities of not entering the educ ational system, entering late, failing and repeating, and dropping out permanently, and higher are the ac c umulated risks their health. II.2.1 Occupations Among the most c ommon oc c upations in whic h c hildren engage are agric ultural ac tivities, whic h enc ompass more than half of working c hildren. This goes gether with the higher number of working c hildren in rural areas and their higher employment rate, whic h is even higher among men. The sec ond plac e is oc c upied by peddling and domestic work, where most partic ipants are girls. In third plac e are servic e jobs and sre and market vendors, whic h are more c ommon among girls. It is worth mentioning that girls are oc c upied in ac tivities that require higher qualific ations. In general, it is estimated that working c hildren follow a labour-insertion model similar that of those people over 18 who are employed. Nevertheless, in the latter group, oc c upations vary more and are of a better quality, given the diversity of ages and studies. II Occupations according the level of wellbeing they provide The Ec onomic Commission for Latin Americ a and the Caribbean (ECLAC) c lassified oc c upations in three groups ac c ording the different levels of wellbeing they provide, taking in ac c ount variables related oc c upation, educ ation, and average monthly inc ome 16 /. To fac ilitate drawing inferenc es in relation the wellbeing that the oc c upations may offer, only the c lassific ation present the oc c upational struc ture has been adopted without relating different variables (see Box II.1). Box II.1. Classification of occupations and levels of wellbeing ECLAC, based on an analysis of 6 c ountries (Brazil, Colombia, Costa Ric a, Honduras, Chile, and Uruguay), c lassified eight oc c upation in three groups: Group I. Oc c upations that provide suffic ient wellbeing: professionals and tec hnic ians, direc tive posts. Sc hooling of 12 or more years and average monthly inc ome between 5 and 12 poverty lines. Group II. Oc c upations that provide intermediate wellbeing: administrative and ac c ounting posts, vendors, and c lerks. Sc hooling of 9 11 years (some c ases of 12 years or more of sc hooling) and average monthly inc ome of 3 4 poverty lines. Group III. Oc c upations that offer insuffic ient wellbeing: industrial, transportation, and sring workers; c onstruc tion workers; domestic workers; waiters, and watc hmen; agric ultural workers. Sc hooling of 8 or less years and average monthly inc ome between 2 and 3 poverty lines. For purposes of this analysis, the oc c upation c lassific ation was adapted as shown next: Group I. Oc c upations that provide suffic ient wellbeing: members of the exec utive and 16 / Ec onomic Commission for Latin Americ a and the Caribbean (ECLAC). Soc ial Panorama of Latin Americ a 1997, Santiago de Chile,

17 legislative powers; direc rs of public administration entities, private organizations, and soc ial interest organizations; professionals, sc ientists, and other intellec tuals. Group II. Oc c upations that provide intermediate wellbeing: middle-skilled tec hnic ians and professionals; offic e c lerks; servic e workers; and sre and market vendors. Group III. Oc c upations that offer insuffic ient wellbeing: labourers; artisans; assemblers; mac hine operars and drivers; agric ultural, forestry, fishing, and hunting workers; peddlers, domestic workers, and others not inc luded in the other groups. Labourers inc lude mine, c onstruc tion, industrial, and manufac turing workers; mec hanic s and related oc c upations; and fixed and mac hine operars, assemblers, drivers, and mobile mac hine operars. Sourc e: ECLAC, Soc ial Panorama of Latin Americ a 1997; CGR-DEC, Results of the Child Labour Survey ac c ording the national oc c upation c lassific ation. An analysis of the oc c upational struc ture by wellbeing levels shows the following (see Table II.3): First, the average sc hooling years ac hieved is low, as they have not yet c ompleted the educ ational c yc le due their ages. Sec ond, there is a larger c onc entration in oc c upations that provide insuffic ient wellbeing and a lower in oc c upations of the intermediate level. This is also true for the distribution by sex and age group. Third, the relative importanc e of the oc c upations that provide intermediate wellbeing among girls more than doubles that for boys, whic h may be assoc iated with the differenc e by sex and the years of sc hooling ac hieved, whic h favours women. Fourth, as the c hildren get older, the relative weight of oc c upations of intermediate wellbeing, inc reases as they require a higher educ ational level, training, and experienc e. However, there is a c lear exc eption in the c ase of girls in intermediate wellbeing oc c upations, sinc e the progress is interrupted in the age group and that of as a result of female adolesc ents partic ipation in oc c upations of insuffic ient wellbeing, mainly as peddlers, domestic workers, and others. And, fifth, in the urban area, oc c upations of intermediate wellbeing are more important, while in the rural area the oc c upation of insuffic ient wellbeing are more c ommon, whic h evidenc es a more flexible oc c upational mobility. Regarding the working population of 18 years and more, whic h also inc ludes the employed members in households where working c hildren live, it is worth notic ing that the highest inc idenc e is in insuffic ient wellbeing oc c upations. There is larger oc c upational mobility in urban areas, and there is a c lear differentiation by sex in favour of women partic ipating in intermediate wellbeing oc c upations while men s number is larger in insuffic ient wellbeing oc c upations. A c omparison between working c hildren and the working population that is 18 or older ac c ording this oc c upational struc ture related the wellbeing, indic ates that c hildren and adolec ents who work follow a pattern similar that of the adult population. Based on this observation, we wonder if in the future they would reac h higher educ ational levels that might allow them have better oc c upational mobility and wellbeing. Thus, educ ation seems be a determinant have better opportunities that result in wellbeing and quality of life with equality. 10

18 Table II.3. Panama. Distribution of the working children and of working population 18 and older, by occupation group associated wellbeing level, by area, province and sex Area, province and sex Total Urban Rural Indigenous Boc as del Toro Coc lé Colón Chiriquí Darién Herrera Los Sans Panama Veraguas Working children Working population 18 and older Level of wellbeing provided by occupation Level of wellbeing provided by occupation Sufficient Intermediate Insufficient Sufficient Intermediate Insufficient No c ases were rec orded. Sourc e: CLS, II Occupational structure by industry and status in employment The oc c upational struc ture by industry c orroborates that working boys and girls are mainly engaged in agric ulture and in the rural areas. Commerc e has more relevanc e in urban areas and more girls engaged in it. Community and personal ac tivities have more importanc e in the urban areas. This distribution evidenc es the labour insertion in ac tivities that require less educ ation and that provide a lower inc ome (see Table II.4).

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