Addressing Root Causes: Private Sector Impacts on Child Labour Outcomes

Abstract

This working paper explores the economic dimension of child labour, as well as the role of the private sector plays in producing child labour outcomes. It provides arguments from an economic and business perspective as to why private companies should make efforts to combat child labour, and discusses how current approaches could be improved or modified to achieve better results. The paper also develops a model that maps the interactions between firms, households, and children. Based on this model, it proposes a series of practices that companies may implement to tackle the root causes of child labour that are linked to their economic activities. Finally, it offers three case studies that illustrate positive and negative practices in actual value chains and an impact toolkit to help companies measure their child labour ‘handprint’.

Keywords: Child labour, economics, private sector, responsible practices