Does Globalization Contribute to Decreasing Child Labor Rates?

Abstract

This study examines the relationship between globalization (from a multidimensional viewpoint) and child labour. It assesses the impact of globalisation on child labour in relation to a country’s level of development. Analysis shows there is a priori direction of the relationship between globalisation and child labour is undefined when levels of development are taken into account for groups of countries. The use of panel data methodology reveals empirical evidence of an inverted U-shape relationship between globalisation and child labour in countries with medium-low and low incomes. The inflection point and the convergence coefficient obtained, shows how the social phenomenon -child labour- would be in low-income countries.