Child Labor, Child Schooling and Household Poverty in Pakistan

(A Case Study of Multan District)

By

Parsa Kanwal

Roll No. 14

M. Phil Economics

Session: 2015-2017

Supervised By

Dr. Imran Sharif Chaudhry

School of Economics

Bahauddin Zakariya University,

Multan.

Submitted to Partial Fulfillment of the Requirements for the Degree

Of M. Phil Economics
Dedicated
To
My
‘’Parents’’
 Acknowledgments

All praises due to Almighty ALLAH alone, the most compassionate and most merciful, the
greatest source of knowledge and wisdom, who bestowed upon me the knowledge, intellect
and enabled me to accomplish the task.

I feel actuated from within to offer my humblest and sincerest thanks to the Holy Prophet
Muhammad (PBUH), the most perfect and exalted among and of ever born on the surface of
earth, who is forever a torch of guidance and knowledge for humanity as a whole.

I am highly indebted to my supervisor Prof. Dr. Imran Sharif Chaudhry, Director of

School of Economics for his skillful guidance, motivation, accommodating behavior and ever
ready manner. I feel pleasant on the accomplishment of this research work, which is all due to
his worthy good-self and I owe to express my pride for being student of him. I am obliged to
Dr. Zahir Faridi, Dr. M. Ramzan Sheikh, Dr. Omer Chaudhry and Sir Farrukh for their very
nice and fruit-bearing guidance through-out the study.

My teachers, Mrs. Naeem Zahra, Muhammad Tanveer Alam, Mr. Qaisar Abbas, Ms. Farzana
Bano, Mrs. Tahira Islam, Mrs. Rashda Chaudhry, Mrs. Humaira Aftab, Muhammad Khaleeq
Ahmad, Ms. Munifa and all who teach me even a word have a special respectable value in
my life for their support and encouragement since my childhood. I wish them all healthy and
wealthy life in future.

Finally, I am highly indebted to my beloved parents; whatever I am today credit goes to them.
My success would have not come true without the cooperation of my family.

Parsa Kanwal
 Declaration

I hereby declare that this research work is the result of my personal effort under the
supervision of Dr. Imran Sharif Chaudhry, Director of School of Economics, Bahauddin
Zakariya University Multan. I have indicated my indebtedness to other sources. I also declare
that the substance of this research report has neither been submitted elsewhere nor is being
concurrently for any other degree.

Parsa Kanwal

Roll. 14

M.Phil Economics
Table of Contents Page #
Abstract
Chapter 1: Introduction
1.1 Statement of the Problem……………………………………………………… 1
1.2 General Objectives of the Study……………………………………………….. 3
1.3 Scope of the Study……………………………………………………………... 3
1.4 Data and Methodology………………………………………………………… 4
1.5 Organization of the Study……………………………………………………… 4
Chapter 2: Review of Literature
2.1 Introduction……………………………………………………………………. 5
2.2 Reviews of Literature………………………………………………………….. 5
2.3 Conclusion……………………………………………………………………... 27
Chapter 3: Theoretical Framework
3.1 Introduction……………………………………………………………………. 29
3.2 Theoretical Frame work………………………………………………………... 29
3.2.1 Labor Supply Theories………………………………………………………. 29
3.2.2 Children School Investment Theory…………………………………………. 31
3.2.3 Poverty Theories……………………………………………………………... 31
3.3 Conclusion……………………………………………………………………... 33
Chapter 4: Data, Methodology and Selection of Variables
4.1 Introduction……………………………………………………………………. 34
4.2 Profile of the Study Area………………………………………………………. 34
4.3 Preparation of Questionnaire…………………………………………………... 34
4.4 Sample Design and Collection of Data………………………………………… 35
4.5 Methodology…………………………………………………………………… 36
4.6 Construction of Hypotheses……………………………………………………. 37
4.7 Specification of the Models and Explanation of Variables …………………… 39
4.7.1 Child Labor Model…………………………………………………………... 39
4.7.2 Child Schooling Model………………………………………………………. 41
4.7.3 Household Poverty Model…………………………………………………… 43
4.8 Description of Variables……………………………………………………….. 45
4.9 Conclusion……………………………………………………………………... 46
Chapter 5: Results and Discussion
5.1 Introduction……………………………………………………………………. 47
5.2 Elementary Data Analysis…………………………………………………….. 47
5.2.1 Characteristics of Working Children ………………………………………... 47
5.2.2 Characteristics of School Going Children …………………………………... 52
5.2.3 Characteristics of Households ………………………………………………. 58
5.3 Econometric Analysis………………………………………………………….. 67
5.3.1 Statistical Analysis of Primary Data………………………………………… 68
5.3.2 Correlation Analysis…………………………………………………………. 70
5.3.3 Empirical Analysis…………………………………………………………... 73
5.4 Conclusion……………………………………………………………………... 79
Chapter 6: Conclusion and Policy Implications
6.1 Introduction……………………………………………………………………. 80
6.2 Conclusions……………………………………………………………………. 80
6.3 Policy Recommendations……………………………………………………… 82
References………………………………………………………………………… 84
Appendix…………………………………………………………………………. 89
Questionnaire……………………………………………………………………. 93

List of Tables

Table # Title Page #

4.1 Description of Variables……………………………………………………. 45

5.1 Distribution of Households by Children Work Starting Age……………….. 48
5.2 Distribution of Households by Reason of Child Work……………………... 49
5.3 Distribution of Households by Type of Child Labor ………………………. 50
5.4 Distribution of Households by Children Earned Income per Month……….. 51
5.5 Distribution of Households by Working Children………………………….. 52
5.6 Distribution of Households by Children School Enrollment Age………….. 53
5.7 Distribution of Household by Type of Education Children Want………….. 54
5.8 Distribution of Households by Inside Home Work Duration of School 55
Going Children………………………………………………………………
5.9 Distribution of Households by School Going Children Favorite Subject…... 56
5.10 Distribution of Households by School Going Children Not Favorite 57
Subject……………………………………………………………………….
5.11 Distribution of Households by Absent Days of School Going Children….. 58
5.12 Distribution of Households by Number of Working Person………………... 59
5.13 Distribution of Household by Mode of Income Payment…………………... 60
5.14 Distribution of Household Members Have No Personal Expenses………… 60
5.15 Distribution of Households by Head Sex…………………………………… 61
5.16 Distribution of Households by Head Education…………………………….. 62
5.17 Distribution of Households by Assets Ownership………………………….. 63
5.18 Distribution of Households by Source of Drinking Water………………….. 64
5.19 Distribution of Household by Received Non-Labor income……………….. 64
5.20 Distribution of Household by Residence Structure…………………………. 65
5.21 Distribution of Households by Suffering Disease…………………………... 65
5.22 Distribution of Household by Mode of Grocery Buy………………………. 66
5.23 Overview of Household Characteristics…………………………………….. 67
5.24 Statistical Analysis of Child Labor Model………………………………….. 68
5.25 Statistical Analysis of Child Schooling Model……………………………... 69
5.26 Statistical Analysis of Household Poverty Model………………………….. 70
5.27 Correlation Matrix of Child Labor Model………………………………….. 71
5.28 Correlation Matrix of Child Schooling Model……………………………… 71
5.29 Correlation Matrix of Household Poverty Model…………………………... 72

5.30 Logistic Estimate of Child Labor Model…………………………………… 73

5.31 Logistic Estimate of Child Schooling Model……………………………….. 76

5.32 Logistic Estimate of Household Poverty Model……………………………. 78

 Abstract

Agenda of this study is to measure the determinants of child labor, child schooling and
household poverty in Multan district of Pakistan. The study is based on primary source of
data that was collected through a survey based on questionnaire. Survey was conducted in
two districts of Multan. Logistic model is used to measure the influential factors of child
labor, child schooling and household poverty in Multan districts.

It is found that head age has a significant positive effect on child labor while head age square
has negative effect on child labor decision. Age of economically active children highly
significant and has positive effect on labor decision. On the contrary education of working
children highly significant and has negative effect on child labor decision. Household poverty
status has significant positive effect on child labor decision while family size and children
interest in school education inversely related with child labor decision. It is suggested that to
reduce the issue of child labor income of household should be increased. Motivational
educational policies must be introduced which increased the interest of children in education.
Govt. should make those policies which do not allow children to participate in labor before
the completion of school education.
In child schooling model, it is found that female male ratio and dependency ratio inversely
related with child schooling decision. Household head education and children interest in
school education have significant positive effect on child schooling decision. While
household monthly income also positively influenced child schooling decision. The results of
this model suggested that to increase child schooling short term as well as long term benefits
of education must be introduced. To minimize gender differences Govt. should play its role
effectively. Technical and vocational training program should be enhanced particular for
those children who take less or no interest in education.

In household poverty model, it is found that per capita income and number of household
working person high significantly influenced household poverty. On the contrary household
received non-labor income and total personal expenses have significant effect on household
poverty. Outside home working hours has negative effect on household poverty. The results
of this model recommended that to decline household poverty it is necessary to provide
financial assistance to poor household.