The complex economics of a complete ban on child labor in the cobalt supply chain: The case of the DR Congo

Abstract

Child labor in the cobalt mining sector of the Democratic Republic of the Congo (DRC) remains entrenched due to widespread poverty, high educational costs, and limited adult employment opportunities. Legal prohibitions, while important, have proven insufficient and may inadvertently drive child labor further underground. This study evaluates alternative, welfare-oriented strategies—including conditional cash transfers (CCTs), educational subsidies, and labor market reforms—to provide sustainable solutions. The analysis finds that even modest annual CCTs per child can significantly reduce child labor, especially when combined with the elimination of indirect schooling costs. Enhancing adult wages further diminishes household reliance on child labor, although this requires broader structural reforms. Corporate social responsibility remains essential; however, voluntary ethical sourcing initiatives have largely failed to address the issue. Effective change will require a comprehensive, phased transition that integrates economic support mechanisms, robust legal enforcement, and binding corporate accountability. Collaboration among governments, businesses, and international stakeholders is critical to developing ethical and sustainable supply chains that eliminate child labor without exacerbating household vulnerability.