Earwax (also known as cerumen) is actually quite important in keeping the ear clean and healthy. The ceruminous glands in the ears secrete it as a way of trapping dirt, dust, and other particles that could damage the eardrum were they to travel inside the ear. Normally, wax builds up, then dries out and moves to the outer ear, where it washes away. In the process, it traps foreign debris and brings it along for the ride.
How can I tell whether my baby's ear troubles are from earwax buildup or an ear infection?
Earwax buildup does not cause the fever and sleep troubles associated with ear infections.
Don't stick anything (including Q-tips) into your baby's ear canal as a way of dislodging earwax. You risk rupturing his tissue-thin eardrum, and you're likely to make the earwax problem worse by pushing the wax further into the canal.
If there's wax on your baby's outer ear, you can wipe it away with a cotton swab or, better yet, a wet washcloth. But if you think he has wax buildup inside his ear, ask his doctor to take a look at it during a routine visit. She can let you know if it's a problem, and she can safely remove it by flushing your baby's ear with warm liquid, which loosens the earwax and allows it to come out on its own.
If you are comfortable in trying home methods, then olive oil, mustard oil can be used. It works by softening wax inside the ear.
Earwax gets denser whenever a person is dehydrated, so make sure your baby gets plenty of fluids.
http://www.babycenter.com/0_earwax-buildup_10871.bc
http://hearstmuseum.berkeley.edu/exhibitions/lerner/gallery4_9.html