Chapter 6 Globalisation and Child Labour

HARNESSING Globalisation FOR CHILDREN: A report to UNICEFC hapter 6 Globalisation and Child Labour *Alessandro Cigno, Furio C. Rosati and Lorenzo GuarcelloSummary. There is no empirical evidence that Globalisation increases Child Labour . Ifanything, Globalisation reduces Child Labour . In a country that starts out with a largelyuneducated workforce, Globalisation raises the wage rate of uneducated, relative toeducated workers. Unless the government takes steps to counter the reduction in theincentive to educate children, the net effect of Globalisation is likely to be an increasein Child Labour . By contrast, in developing countries that have spent sufficiently foreducation to have a relative large number of workers with at least a basic education, Globalisation raises the wage rate of educated, relative to uneducated workers. In thesecountries, public intervention is needed not to raise the incentive for parents toeducate their children, but to loosen liquidity constraints.

effects of globalisation on wages and employment in the developed world. Since our concern is child labour, and child labour is concentrated mainly in the developing world,1 we focus on the experience of developing countries. A useful source of information are the World Bank’s Development Indicators. Using

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