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Institute for Workplace Studies-----------------Professor Samuel B. Bacharach

School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

16 East 34th Street, 4th floor--------------------Stuart Basefsky

New York, NY 10016 -------------------------------Director, IWS News Bureau

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International Labour Organization (ILO)

 

PROFITS AND POVERTY: THE ECONOMICS OF FORCED LABOUR [20 May 2014]

http://www.ilo.org/global/topics/forced-labour/publications/WCMS_243391/lang--en/index.htm

or

http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_243391.pdf

[full-text, 66 pages]

 

Press Release 20 May 2014

ILO says forced labour generates annual profits of US$ 150 billion

Report finds illegal gain from forced labour of about 21 million people amounts to three times more than prior estimates.

http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_243201/lang--en/index.htm

 

The study investigates the underlying factors that drive forced labour, of which a major one is illegal profits. Figures will include a breakdown of profits by area of forced labour and by region.

 

Table of Contents

Preface ............................................................................................................................................ iii

Acknowledgements ..................................................................................................................... vii

Introduction .................................................................................................................................... 1

Chapter 1 ........................................................................................................................................ 3

Measuring forced labour, human trafficking and slavery: Why definitions matter .............. 3

Measuring forced labour: A brief history ................................................................................ 5

The ILO 2012 Global Estimate of forced labour ..................................................................... 7

Chapter 2 ........................................................................................................................................ 9

Estimating the profits of forced labour ....................................................................................... 9

Previous estimates .................................................................................................................... 10

New estimate ........................................................................................................................... 12

Regional and sectoral distribution of workers ...................................................................... 16

Profits from non-domestic forced labour exploitation ........................................................ 20

Methodology ............................................................................................................................ 22

Profits from forced labour in domestic work ........................................................................ 25

Profits from forced sexual exploitation .................................................................................. 26

Methodology ............................................................................................................................ 28

Chapter 3 ...................................................................................................................................... 29

What makes people vulnerable to forced labour? ................................................................ 29

Theoretical discussion of the determinants of forced labour ............................................ 29

Descriptive analysis of the victims of forced labour ............................................................ 31

Indicators of forced labour ................................................................................................. 31

Demographics ...................................................................................................................... 35

Education and literacy ........................................................................................................ 35

Wealth and Income Shocks ............................................................................................... 35

Determinants of forced labour at the household level ...................................................... 36

The probit model .................................................................................................................. 36

Forced labour measured at the household level: The results ........................................ 36

Demographics ...................................................................................................................... 37

Education and literacy ........................................................................................................ 38

Household vulnerability ....................................................................................................... 40

Determinants of forced labour among returned migrants ................................................ 40

The trivariate probit model ................................................................................................. 40

Determinants of forced labour among returned migrants: The results ......................... 41

Demographics and literacy ................................................................................................ 42

Recruitment fees and debt ................................................................................................ 44

Occupation .......................................................................................................................... 44

Conclusions .................................................................................................................................. 45

Appendix ...................................................................................................................................... 49

1. Definitions .............................................................................................................................. 49

2. Profits from the Illegal Use of Forced Labour .................................................................... 49

Dealing with non-response ................................................................................................. 49

Response Weight ................................................................................................................. 49

Response Weights: The Dependent Variables ................................................................. 50

Bibliography ................................................................................................................................. 53

 

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