Child Labor and Free Trade

Globalization and child labor are the two perimeters that are often linked together. Since globalization opens up new jobs in poor countries, as the foreign competitors strive to minimize their costs of production, many argue that this creates countless opportunities for the exploitation of children. Harsh working conditions, subjection to near-slavery, and even physically abusive treatment are some of the taglines that have made globalization into even a more controversial issue. However, as a byproduct of poverty, child labor has been long-standing and not exclusively caused by globalization. Faced with newly available jobs, the decision whether children will enter the workforce or acquire education is solely made by their parents. Hence, the reality is that the preferences of parents are the main determinants of the outcome.

According to Jagdish Bhagwati, the author of In Defense of Globalization, “poor parents, no less than rich parents, generally want the best for their children” (Bhagwati, 69). The claim that follows is that these types of parents will most likely put their children back in school rather than send them to work. As new jobs provide higher salaries, parents can feed the entire family and sustain normal living without the help of their children. Extra income that they now earn compensates for the earnings from the children’s work. Parents who highly value the goodwill of their children will also prefer education because their children will enjoy numerous benefits in the future as well. Therefore, the author’s claim that globalization accelerates the reduction of child labor and enhances primary school enrollment holds true for parents whose preferences fit into this category.

A potential disagreement with Bhagwati’s main claim may arise if one introduces a different group of parents, those that view their children’s education as an investment good. The author makes an assertion that even this group of parents will respond to increasing...