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ILO study says eliminating child labour in Latin America could yield major economic benefits

Eliminating child labour in Latin America within the next 20 years could generate an estimated US$340 billion in economic benefit as a result of children's improved access to universal education and better health care. Benefits will vastly outweigh the costs of eliminating child labour, estimated at about US$105 billion to be invested between 2006 and 2025. According to an ILO study,1 this would result in a net economic benefit of some US$235 billion.

Type Article
Date issued 2005
Authors DCOMM
Unit responsible Communication and Public Information
Other languages Español • Français

MADRID - The study ( Note 4) simulates the elimination of child labour over the next 20 years, including the eradication of its worst forms within the first ten years, through the improvement of educational programmes at an estimated cost of US$56.5 billion and direct interventions in the case of the worst forms of child labour estimated at US$14.9 billion.

The cost-benefit analysis was carried out to examine the economic implications of implementing two ILO Conventions on child labour (No. 138 on minimum age and No. 182 on the worst forms of child labour). It is based on data from 19 countries in the region where an estimated 19.7 million children aged 5 to 17 currently work as child labourers.

The study defines as economic benefits those that stem from a better-educated, healthier population and increased productivity. In the case of education, the ILO estimated the direct net cash benefit at US$339 billion over 20 years, while health improvements are estimated to represent an economic value of US$2.1 billion.

The study uses the same methodology as a previous analysis entitled Investing in Every Child, An Economic Study of the Costs and Benefits of Eliminating Child Labour, issued by the ILO in 2004. "The net economic benefits of eliminating child labour are positive and quite significant," said ILO Central America office Director, Gerardina González, at the launch of the report. "Even if we only take economic criteria into account, we can say that it pays. The results obtained will be a core element for promoting social policies and programmes."


Note 4 - Construir futuro, invertir en la infancia: Estudio económico de los costos y beneficios de erradicar el trabajo infantil en Iberoamérica, ILO, San José, Costa Rica, 2005, ISBN 92-2-317702-2.

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