Economists view child labour as economics activities in which children participate.”Economic activity” is defined as any activity is resulting in the production of goods and services that add value to national product.
Child labour is highly related to poverty.It substitutes unskilled adult labour at a lower cost.The 2010 adult unemployment rate was 9.4 percent,or 40 million in absolute numbers.
In India about 90 percent of the working children are in rural areas.
Children from the lower castes are more vulnerable to labour-related exploitation.
The work participation rate is higher among minority religious communities .
The incidence of child labour declines as the households go up in the economic ladder.
Child workers are spread more among illiterates, and primary and secondary educated household.
Girls children face a higher burden of child labour nationally. However,there are wide variations across States.
A time use survey showed that over 32 percent of the children who where considered as ‘nowhere’ (neither in school nor in work) where actually working.
The decision on child labour or schooling is essentially made by parents,who regard children’s time as an assets that can either be used today to earn wage income or be “saved” in school so that children become more productive in the future.
In the non-inclusive Indian economy ,the poor have very little access to low interest capital. So during hard times they are forced to pull children out of schools and push them into the job market.
The effects of globalization on child labour are still being studied.A UNICEF report says international trade appears to be associated with a lower incidence of child labour. Some studies indicate that globalization may increase the demand for unskilled labour in countries that specialize in labour-intensive industries.The demand for child labour, which is unskilled,therefore,may increase.
Child labour is more prevalent in poorer countries than richer ones.