Chapter 2

Literature Review

2.1 Introduction

There are countless studies on the issue of child labor, child schooling and household
poverty. In this chapter I will observe different literature especially with reference to
Pakistan, developing countries and developed countries of the world, how household poverty,
child labor and child schooling related to each other. I will discuss what are the main causes,
consequence or impact of child labor, low child schooling and household poverty on Pakistan
economy.

2.2 Review of Literature

Canagarajah and Coulombe (1992) evaluated the conditions of child labor and schooling in
Ghana. In this case study child labor defined as a school-going age children only performed
work outside the home for the sake of self as well as family survival. They analyzed that
welfare index of household reveal weak negative link with child labor and strong positive
link with school enrollment, while reverse is true in rural areas. The results of this study
showed that excessive cost of school, distance from school and inefficiency in teaching
methods leads parents have no other option but to send their child towards labor market. They
concluded that female literacy rate (i-e dwelling work excluded from definition) enhanced as
compared to boys. This study suggested amenable educational policies (especially in rural
areas) and increment in private as well as social returns of education decline child labor. On
the contrary, mostly girls spent more hours in domestic work which is also hinder them in
school enrollment and this study ignored this aspect of child labor.

Jensen and Nielsen (1997) studied the situation of child labor or school attendance in Zambia.
This study basically depends on two hypothesis of parents decision either their child
participate in labor market or in school, first poverty is the major cause of child labor, second
low quality of school compelled parents to keep their children missing from school.
Theoretical as well as empirical analyses of this study supported first hypothesis while the
second seems to be least feasible. The results of this study showed girls low school
attendance or high dropout rate(i-e early marriages or pregnancy) as compared to boys, step
or non-biological relations, age of child, more family members involvement in labor market,
distance to school, defective capital market structure and remittances are negatively related
with school attendance or participation, while high grade achievement, assets or saving,
formal employment opportunities for household, rural residency (i-e more primary school
available there as compared to in urban),human capital of household head are positively
related with school attendance or participation. The study suggested whole decline in cost of
schooling, improved capital market structure and income generating possibilities for
household heads brought directly or indirectly positive impacts on children school
participation rate.

Patrinos and Psacharopoulos (1997) empirically analyzed the household family size, child
schooling and child labor in Peru. In this paper two situations are analyzed first estimation of
school progress in the form of repeat grade or overage, second chances of work of school
going children. The results of this study showed age of children, rural residency and number
of children in a family positively influenced age grade distortions, while reverse is true for
parent education(i-e especially male),large homes and private schooling. They concluded that
not any children repeat the same grade when worked for finance their educational expenses
so, in this situation child performed the both duties at the same time. The authors suggested
that instantly ban on child labor seemed not a suitable decision (i-e it lead more poverty
among household) so, compensation and subventions must be offered to household and
working children to avoid full time child labor.

Blunch and Verner (2000) explored the association of poverty and child labor in Ghana. In
this case study harmful child labor term used to show how child labor competes with the
process of human capital accumulation of children directly. The preliminary results of this
study shows harmful child labor positively related with poverty and child age, while this
situation is mostly found in rural areas than urban and girls mostly involved in it (less attend
school). In their study, they constructed an economic model to find out the determinants of
harmful child labor whose results similar to the preliminary results but in different manner (i-
e ownership of assets, distance from education center, region of resides and gender). The
most credible point of this study is discussion about disable child’s (negatively related with
harmful child labor), these Childs involved less physical movement activity in both urban and
rural regions. Through both approaches authors investigated rural and urban girls more
involved in harmful child labor activity than boys similarly, low income or non- low income
girls mostly involved in harmful child labor activity than boys.

Ray (2000) analyzed the situation of child labor, child schooling and compare it with young
or mature labor through empirical evidence from Pakistan and Peru. This study basically
depends on two hypothesis, first direct link between working hours of a child and poverty,
second indirect link between school education and poverty while, luxury axiom(low family
income promote child labor) used to test its applicability in both countries. The results of this
study supported the above hypothesis only for Pakistan and negate Peru, child labor as a
source to escape from poverty trap in Pakistan than Peru, as female wage increased than
working hours of her also increased; men more financially supported their family income
than women in Pakistan as compared to Peru. While in case of Peru as male wage increased
then working hours for female decreased, women more financially supported their family as
compared to Pakistan. He concluded when all income of household fall below the poverty
line then parents have no any option but to derive their children(especially girls than boys)
out of school while, elder and mother education brought significant impacts on child labor
and schooling in both countries. The author of this study suggested instant outlaw on child
labor not a suitable decision and such policies made that enhanced the education standard in
both countries especially in Pakistan.

Rosati and Rossi (2001) inspected the factors affect the worked hours of children and school
enrollment decision and its link with human capital accumulation process in two selective
countries. In this study they discussed the impacts of child work duration on school
enrollment/ class distortions and human capital accumulation process in Pakistan and
Nicaragua. The authors of this study found that increment in income indirectly influenced the
child work period, family size positively influenced child school enrollment decision and
reduced child work period, a child work more an hour in the presence of small siblings in the
house, work hours positive link with more number of school age children while reverse true
for Pakistan. They also concluded that gender differences greater in Pakistan than Nicaragua
so, male child worked more time than female, child working period greater in urban areas
than rural (rural children less enrolled in school as well as work less hours), in Pakistan an
additional hour child work created 3.8 points more chances towards class distortion while in
Nicaragua this created 3.6 points more chances towards class distortion. The authors of this
study recommended that both minimum child work period as well as more school enrollment
policies made to accelerate the human capital formation process.
Shapiro and Tambashe (2001) explored the relationship between children education
investment decision and sex, poverty and household family size in capital of Democratic
Republic of Congo. In this study authors discussed that how economic improvement brought
variations in child school enrollment and more grades achievements, they also examined the
association between education standard of household headship holder and children. The
empirical results of this study revealed that improvement in household economic status
positively influenced the investment decision in children (both male and female) education,
female child (10-14) years obtained less education under the female headship as compared to
male, while family size negatively related with children investment decision in education.
They also concluded that investment in children education inversely related under the
headship of others than parents and gender of headship holder not substantially influenced the
decision of male child (particularly) investment in education.

Admassie (2003) examined the compatibility between child labor and school attendance in
subsistence economy of rural Ethiopia. In this paper author discussed all kinds of exploitative
(carry and lifting heavy weights and other dangerous works) or non-exploitative (routine life
of farm and domestic work) activity that children performed inside (i-e look after of small
siblings, cooking, house dusting and own farm work) and outside (hotel work, slavery and
look after of shop, etc.) house. The results of this study pretended labor force participation
rate and gender discrimination positively influenced of growing age, mostly less girls
enrolled in school(too expensive and away from house) as compared to boys, a school going
children hold the capacity to performed normal house and farm work. The author of this
study concluded household favored in male child investment that brought long term benefits
for them and avoid female child investment that brought only short term benefits for them
and long term benefits availed her in-law household. The results of this study recommended
short term flexible educational policies made during peak periods of child labor demand in
agriculture sector and long term policies made for positive improvement in demographic
structure.

Ali and Khan (2003) examined role of urban household of making simultaneous decision
regarding child schooling and labor in Pakistan. In this study authors discussed supply side
factors of child labor and examined the urban household’s characteristics, child
characteristics, and head of household characteristics that might influence the decision of
parents towards labor or school. This study based on four sequential parents decision stages
(i-e first, only going to school, second going to school and doing work, third only doing
work, fourth neither going to school nor doing work). The results of this study revealed
similar relationships found up to three stages as discussed in previous literature while, the 4th
stage result showed that in urban areas parents more concern towards education in urban
areas so, they sent less their children for work as compared to rural areas, birth order
positively influenced child labor, gender discrimination enhanced boys schooling so, they
less fall under this stages, households assets holding decreased the chances of work. They
suggested that Govt. should play their role for the provision of educational policies (for child
as well as adult) and control the demographic compositions.

Khan (2003) explored the performance of children in different activities specifically labor
and schooling in two districts of Pakistan. In this study authors discussed the features or
characteristics of different factors like child, parents, household, household headship holder,
residency location, family composition, etc. and examined its impacts on four decision stages
(i-e school only, work plus school, work only and only managing home). The results of this
study revealed that child birth order inversely influenced only work or school decision
(reverse happened for third and stage), gender discrimination greater in rural areas as
compared to urban areas (girls faced low availability and quality of education, higher dropout
rate, etc.), child education and age status positively influenced the child only work or school
decision, while education and age status of household headship holder, household per capita
income and assets holding positively affected only child schooling decision. They also
concluded that mother education standard brought more significant results as compared to
father regarding child school decision only, family size negatively influenced child schooling
decision, while income and employment status of parents not influenced the child schooling
decision.

Aldaba et al. (2004) empirically examined the inverse link between child schooling and child
labor in Philippines. In this study authors discussed decision of child labor influenced market
wage rate and opportunities, parent preference towards child investment while the schooling
decision influenced child characteristics (total expenses on each child, age, health status and
highest grade obtained), household and community factors (distance/access to school and
school availability) and asset holding of household (parents qualification, subsidy and except
agriculture land). The results of this study revealed that parents more invested in girls than
boys, dropout rate higher for boys (more participated in labor market) than girls, child age
positively associated with market opportunities, parents qualification positively related with
child schooling decision, children of higher asset holding household and resides in
impoverished areas more involved in labor activity, while parents spend less on elder child
quality. They also determined the main causes behind child labor (role of imperfect market
and less availability of total assets) and working capacity of child initially increasing then
decreasing at growing age. The authors of this study recommended that student education
loan scheme made from which student get loan to manage their educational expenses and
prepared poverty reduction as well as boys education policies must motivated (specifically in
impoverished areas) which further provide different types of assistance to households and
male child.

Edmonds (2005) analyzed the role of potential income as responses of child labor and
schooling in South Africa. This study used Old Age Pension Program (OAP) as a social cash
transfer for black South African elder member of poor families and age is the primary
determinant of it. A male is pension eligible at the age of 65 and a female eligible at the age
of 60, both are consider nearly eligible until this age. The author examined the impact of
social cash transfer on child labor and schooling when black elder family member moved
from nearly eligible to eligible status. He investigated in rural region boys child schooling
increased and working hours decreased simultaneously under the headship of male pension
eligible, while under the headship of both female/male pension eligible working hours
decline more for girls(i-e mostly involved in domestic work) than boys(i-e engage in market
work).Pension only got Govt. employees after retirement but he did not discuss about those
poor people who are working in informal sector, suddenly unemployed before this age and
facing poverty, never enrolled their child in school and have no option but to send their
Childs in labor market.

Ersado (2005) comparatively analyzed the household decision of children labor and
schooling activity in both rural and urban regions of Peru, Nepal and Zimbabwe. In this study
author discussed the role of school quality, mother work status, parents qualification, access
to banks, school education expenses, labor market structure, age and child gender on affected
the decision of child work and school attainment in urban/rural region separately . The results
of this study revealed that in all countries child school attendance inversely related with age,
female and elder children school participation rate low as compared to boys and small
children, family qualification negatively related with child labor, responsibilities of small
siblings strongly affected child school attendance in urban areas than rural and only in rural
areas poverty is the main cause behind child labor. He also investigated that better labor
market structure and more school expenses positively influenced child school attainment
(specifically in Nepal and Peru) opposite happened in urban Peru, mother work outside home
promoted more child labor in Peru and Nepal and access to credit market significantly
affected child school attendance in Nepal and Zimbabwe while reverse happened in Peru. The
results of this study suggested that small siblings day care centers (in urban region),
betterment in adult wage and school quality improved child school attainment (particularly in
Peru).

Moav (2005) examined the condition of low quality children and persistence poverty within
and across the countries. In this study author developed a dynamic model which generate
multiple equilibrium steady states within and across the countries, the high income steady
state shows more investment in child quality and less quantity of children while, low income
steady state shows low investment in child quality and more quantity of child. The each point
of multiple steady states depends on multiplier effects like at high point more income means
more opportunities of child investment, less resources devoted for more children So, the high
income parents(or highly qualified) prefer quality over quantity of their children. The results
of this study showed child labor inversely related with cost of quantity of child and positive
with life expectancy, technological spillover and income inequality. The author of this study
suggested child labor regulations and public schooling play a crucial role of the contraction of
child labor and fertility rates.

Toor (2005) examined the relationship of child labor with literacy and poverty in Pakistan. In
this study author analyzed the existence of child labor in 100 districts of Pakistan and
estimate the hypotheses whether it is more in impoverished areas and prevaling low
education attainment. The results of this study revealed that child labor not only persist in
impoverished areas but also in well developed areas among these districts, girls school
dropout ratio high as compared to boys at low income level, child labor negatively related
with literacy rate (both for girls and boys) and deprivation indicators (i-e out of school
children, homeless or rented house population and unemployment level in each district). He
also investigated male child labor positively associated with household size and per capita
income while reverse happened of female child labor. The results of this study suggested
government first overcome the issue of poverty then ban on child labor and improved
education standard.

Amin et al. (2006) examined whether the labor market and dwelling work prevent the
children from school attainment in Bangladesh. In this study authors discussed the effects of
labor market work and dwelling work on children (separately for both male and female child)
labor and school attainment decision in urban and rural areas separately. The results of this
study revealed that labor market work less prevented the rural female child and urban male
(particularly small age) child regarding obtain school education while dwelling work activity
least prevented small rural and elder urban male child to got school education. They also
investigated that children involved in labor (either labor market or dwelling work) activity
mostly less attended school as compared to not working children. The results of this study
suggested that small sibling’s day care centers helpful in order to enhanced female child
school education. They also recommended that short as well as long term policies made
which enhanced children education similarly technological inventions in labor market and in
household work activity reduced the problem child labor and simultaneously enhanced child
schooling.

Beegle et al. (2006) analyzed the role of agriculture shocks of determine child labor in
Tanzania. In this study authors discussed whether the negative agriculture shocks (low
techniques of production lead to crop failure) promote child labor and how a household
compensate these effects of such shocks with assets (i-e cash, physical except land and
durable assets), buffer stock and loanable fund. The results of this study showed children of
shocks faced households thirty percent more involved in labor activity, crop shocks positively
related with school absence, household’s assets holding declined eighty percent effects of
such shocks. The authors of this study concluded that low income household bear shocks
after minimize their assets holding plus child labor while rich household bear shocks only
declined their assets holding instead of took loan. The results of this paper suggested that
during crop shock period easy loan availed scheme reduced the child labor problem and
improve the well-being status of low income households.

Dayioglu (2006) studied the role of household income of determining child labor in urban
Turkey. In this study author discussed the different indicators (annual household income
except child wage, household assets, annual father total incomes (both labor and non- labor
income)) to examined household income and financial or economic position of households,
this is considered the main determinant of child labor. The results of this study showed father
incomes (both labor and non-labor income) and his public employment status negatively
influence child labor, one more year parents education decreased child labor 0.2 percent and
increased school participation rate, age and quantity of children positive influenced child
labor and low wage child labor higher in absence of father at home. He concluded that child
labor higher in low assets holder household as compared to low income households. The
results of this study negated the cash transfer program that helped household to establish their
own business leads to create more chances of child labor and recommended poverty
reduction as well as small scale or medium scale financed program declined the problem of
child labor.

Khanum (2006) empirically analyzed the determinants of child labor and school participation
in Bangladesh. In this paper author discussed the impacts of child characteristics (age, gender
and relation with household), parents characteristics (parents education and employment
status, and size of family) and household characteristics (size of family, total assets,
availabity and distance to school) and its impacts on these four options (only school, only
work, school plus work and neither in school nor in labor market). The empirical results of
this study showed son and daughter of household more involved in only school and learnt no
economic activity, female child more involved in both activities as compared to boys, family
size positive link with child school attendance or enrollment, higher education standard of
parents created more trends towards child schooling, children of per day wage earners father
mostly lie in second and third option while, children of trade professionals only doing study,
working mothers status significantly influenced girls education and not for boys. The author
of this study concluded little domestic work permit girls to enrolled in school, they possess
the capability to perform both duties at the same time as compared to boys. The author of this
study suggested school participation of children enhanced in impoverished areas.

Mansuri (2006) empirically analyzed the effects of migration on children schooling and labor
activity in rural area of Pakistan. In this study author discussed how temporary migration
(only economic) of low skill household towards developed countries influenced the children
human capital in developing countries. The results of this study revealed that temporary
migration of household positively influenced the children (particularly for female child)
human capital investment decision so, children school participation rate increased, declined
school dropout rate and simultaneously decreased child labor. She also concluded that
migration of male household member towards developed countries also reduced the gender
disparity and improved household living standard or declined poverty while female headship
seemed to be less significant to determine the migration effects in this area. According to this
study male child enjoyed more benefits of male migrated household under the female
headship as compared to female child. This study showed the temporary effects of migration
which brought only short time period betterment while ignore the long time period
betterment.

Sakamoto (2006) empirically analyzed the behavior of parents towards their children and
children work in rural India (Uttar Pardesh and Bihar). In this study author examined the role
of qualitative factors like parents attitude or preference towards their children (clothe
spending on children) , parents power to control household activities, environmental factors,
races ect in determined child labor in UDCS. In this study the extent of parents concern
towards their children estimated from clothe spending on children, low clothe spending show
low concern of parents, leads to promote child labor and vice versa. The results of this study
showed male head of household mostly sent their children for work and environmental
factors (existence of school, educated atmosphere and credit availability) and less spending
on children positively related with child labor. He also concluded child labor and father work
are substitute and religion did not affect child labor except caste. He suggested different
policies must be made by Govt. like bring awareness in parents’ attitude towards children
education, change power structure in houses and easy credit availability.

Togunde and Richardson (2006) analyzed the family size and its composition link with child
labor in urban Nigeria. In this study authors discussed the association of child labor between
different household variables (i-e religion, residence location, child working hours, age and
gender of household head and child work starting age, parent’s qualification status, etc.). The
results of this revealed age and of household head, child gender and residence location
approximately not influenced child working hours while working hours of child labor
positively related with child contribution in household total income, work starting age and
family size(household plus children quantity). They also concluded that children of Christian
religion less/no involved in labor activity as compared to other religions (Islam and
traditionalist) and child of low family size less participated in labor market, while they are the
children of high social and economic status parents. The authors of this study suggested that
there is a need to brought revolution in demographic factors of household that control the
overgrowing population and made policies to uplift the social economic status of parents.

Wahba (2006) examined the impacts of market wage rates and parents background on the
decision of child labor and child schooling in Egypt. In this study author analyzed that market
wage and children forefather social economic status determined the child labor and schooling
decision, according to him a children of past labor parents(who did the same work as their
child do today) involved in labor activity, he considered that child labor transmit from one
generation to others. The results of this study showed child labor and child schooling
inversely related to each other, in each region layman parents market wage negatively
associated with child (both male and female child) labor, child involvement in labor market
positive influenced child market wage, mother labor activity in her childhood brought more
significant impact on male child than father labor activity and parents qualification negative
influenced child labor while reverse true for child schooling. He also concluded that income
inequality, more market information and presence of small siblings in households positively
associated with child labor activity, more child school participation rate increased under
female headship as compared to male, foreign remittances, and elder involvement in
manufacturing or public sector inversely related with child labor. The results of this study
recommended that cash transfer schemes made in those regions where elder less market wage
system prevail.

Das and Mukherjee (2007) discovered the role of females in determine the decision of male
child labor and schooling in urban India. In this study authors first discussed the impacts of
human capital on adult and child wage rates in labor market then examined the association
between parent’s human capital and child work as a labor decision, access to school and
school dropout rates. In this study authors found almost 2.5% male children of poor families
involved in labor activity in industrial sector of India, caste systems least influenced child
labor activity, more children involved in manual labor activity than harmful labor activity and
school dropout rate and child labor activity greater for Muslims children. They also
investigated that stability in income of father inversely related with child labor while mother
education status strongly affected child school participation rate than father education and
reverse happened for child labor activity. The results of this study suggested that Govt. took
initiative for the promotion of good quality of education (particularly for elder women) and
compulsory school attainment.

Duryea et al. (2007) explored the role of economic shocks and its impacts on child work and
school status in six big cities of Brazil. In this study authors made comparison between
temporary unemployed (i-e four month) household head and permanent employed household
head and examined its effects on child labor force participation rate and school attainment.
According to them temporary unemployed household head faced negative transitory
economic shock, these household head have not another option except to send their children
towards labor market when they have zero saving stocks. The results of this study revealed
that after such shocks the chances of grade distortions enhanced from 38 to 43% and shocks
impacts positively influenced the chances of children participation in labor market, school
dropout rates and distorted the grade. They also concluded that shocks effects mostly bear
female child as compared to boys, temporary unemployment shocks negatively influenced
children. The results of this study recommended that short as well as long saving schemes
must be introduced that become helping tool of temporary unemployed people during such
shocks.

Emerson and Souza (2007) studied the role of household head or parents gender bias and its
impacts on the decision of child labor and school attainment in Brazil. They examined that
the matter of parents (father, mother or both) qualification brought significant changes in
decision of child investment and involvement in labor market. The results of this study
showed that father qualification mostly positive influenced male child investment decision
and negative influenced male child labor market involvement decision as compared to mother
qualification while, mostly mother qualification positive influenced female child investment
decision and negative influenced female child labor decision as compared to father
qualification. The authors of this study suggested that in male dominating society cash
transfer to father declined child labor most effectively. But this study ignored the aspect of
how much amount out of this cash transfer father must spend on each child.

Fares and Raju (2007) studied the pattern and relationship of child labor among sixty five
developing countries of world. In this study authors basically distinguished the term of child
labor from child economic activity (work for wage plus work in own family farm), along with
its similarities and dissimilarities among different developing countries. They examined the
impact of both terms on region, employment sector, gender and human capital formation
process separately. The result of economically active children revealed that boys mostly
involved in economic activity as compared to girls, in all the countries average number of
economically active children (particularly boys than girls) mostly participated in agriculture
sector than other sectors(industrial and service sectors). They also concluded that there is
positive association between the rates of child economic activity and not attending school
activity, economically active children (particularly among girls) school attainment rate
greater in both Latin America Caribbean than other regions, while the results of child labor
term greater consistence with economically active children results.
Kruger (2007) examined whether the unexpected fluctuations in output level of coffee
making factory influenced the child labor and schooling decision in Brazil. In this study
author explored the variation in coffee factory level in specific regions also varied the
employment incentives as well as school attainment of children (both male and female) of
least, middle and higher families. The results of this study revealed that betterment in
economic situations (i-e increment in demand or amount of output level) promoted the more
chances of male child labor activity of low income families than middle income families,
elder male child more participated in school than in labor market. He also concluded that
results of such type of shocks strong negative influenced the children (both male and female
child) welfare of least and middle income families while reverse true for higher income
family children. According to him such type of economic growth more enhanced the
disincentives of children human capital formation process.

Shafiq (2007) empirically analyzed the role of household school education and its impacts on
child work decision in rural area of Bangladesh. In this study author discussed the household
education standard, financial status, family size and religion to determined children schooling
and work decision. The results of this study revealed that low financial position negatively
influenced the children school enrollment decision and promoted children work activity,
mother education more significantly influenced the children (specifically greater for boys
than girls) work or school decision as compared to educated father and more presence of
elder in family declined the chances of child labor. They also concluded that child work and
schooling least varied with direct cost of school while indirect cost significantly influenced
this decision. The results of this study suggested that there is need to made certain policies (i-
e child work reduction) particularly for some school educated households similarly
microfinance support scheme initiated to alleviate such problems.

Hou (2009) empirically analyzed the link of wealth with child labor and child schooling in
terms of economic growth contexts from 1998 to 2006 in Pakistan. In this study author also
examined the link of wealth with child idleness situation, on the assumption that child
idleness declined as economic growth took place. In this study author investigated that
economic growth took place in this era declined poverty rate from 30% to 25%,
simultaneously enhanced the child (both girl and boy) school enrollment rate and reduced
child labor in country, in urban areas child labor rate more declined for boys than girls while
in rural areas this rate declined at the same rate for both gender, school enrollment rate more
enhanced for boys than girls in urban areas while reverse happened in rural sector. He also
found child idleness rate more declined for girls than boys in rural areas and this rate less
declined for girls than boys in urban areas, as the male child grew old more engaged in labor
activity and female child tends towards idleness, in rural areas children (particularly girls)
more involved in unpaid labor activity than in urban sector. The results of this study
suggested cash transfer scheme suitable only in those sectors where children involved labor
activity to meet their basic needs while effective school education promotion policies made
where the lack of schools quantity and quality (especially in rural) enhanced children to
involved in labor activity.

Kim (2009) empirically analyzed whether the children involvement in two activities (work
plus school) considered the best policy measure in Cambodia. In this study author composed
the term child work into two categories, first permit able (neither interfere child schooling nor
endangered them) child work and second non-permit able (interfere school participation as
well as harmful for health) child work. The author of this study found that only to some
extent poverty promoted the child labor, more male child involved in both activities (work
plus school) than female child, more female child did nothing than male child, teachers (less
paid job) spent less hours in classes, they failed to fulfill their responsibilities in well manner.
He also concluded that even flexible educational policies (limited resources access) not
permit the children to perform both duties at the same time. The results of this study
recommended that there is need to invent a diversified school education system which
promoted the more chances for children to perform both activities at the same time. This
study discussed more one shift in school is necessary but ignored the relieve behavior of low
salary teacher.

Basu et al. (2010) empirically analyzed the association between child labor and family wealth
status. In this study authors included both own house work activity and outside house activity
to explain child labor while household wealth standard measured through the amount of land
holding and examined its relationship with child labor (specifically working hours). The
results of this study revealed that elder child’s and female more involved in labor activity
than others, women education more significantly decreased child labor as compared to men
education, more children engaged in domestic work than farm work and child labor activity
and school participation moved in opposite direction. The authors of this study explored that
children labor activity increased until land holding reached to peak point of such holding and
after this point child labor start decreased. The authors of this suggested that implementations
of educational (particularly women) as well as institutional reforms necessary for the
contraction of child labor similarly, reduced imperfections from male labor market helpful in
this regard.

Boockmann (2010) used both individual and collectively level of data to examine the
importance and impacts of small age conventions of International Labor Organization
regarding children labor and schooling. In this paper author described the how the
international labor organization policies helpful of reducing children labor activity in
different nations (either these countries are adopted such policies or not) and simultaneously
increased school attainment. The results of collective analysis of this study revealed that
children school participation seems to similar in both convention followed or not followed
countries, presence of small siblings in household negatively influenced child schooling and
while in case of individual analysis children school participation rate greater in convention
following countries. According to him the results of both analytical approaches showed that
such conventions brought not fruitful results as desired in following countries.

Gartner and Gartner (2011) discovered the determinants of wage traps that further lead the
problem of child labor, worst form of poverty and declined in literacy rate. In this study
authors discussed the different forms of labor supply curve like positively, backward bending
and negatively sloped supply curves while examined its influence on relative subsistence
level of a household. The results of this study revealed that wage rates inversely related with
working hours, wage trap occurred under the negative wage elasticity’s and wage rate direct
related with household work strength. They concluded that decline in wage rate increase the
absolute poverty (below the subsistence level) which further enhanced school dropout rate
and children began participation in labor market increased. The results of this suggested that
international assistance, restrictions on child labor and labor unions may helpful of reducing
absolute poverty and child labor from an economy. But the contract of labor union took place
only in industrial sector or some other civilized sectors not in the whole poor economy.

Grigoli and Sbrana (2011) examined the factors determine the child labor and schooling in
Bolivia. In this study authors investigated the impacts of govt. assistance in the form of
school incentives on the behavior of parents regarding the decision of child labor and school
enrollment or attendance. The authors of this study found that child age and Spanish language
positively associated with child work decision, child work higher in rural areas than urban
while reverse true for school enrollment, and parent’s qualification declined the chances of
child work while increase the chances of school enrollment. They also concluded that zero
substitutability found between work and school among the children of extremely poor
households while such types of policies more beneficial for extreme poor families than non-
poor. The results of this study suggested that school incentives schemes promote the school
enrollment or attendance (especially in rural areas) and certainly uplift the status of poor local
families’ children.

Zapata et al. (2011) studied whether the gender and caste/ethnic determined the child
domestic household work, which further lead the inverse link between child labor and
schooling in Bolivia. In this study authors used two types of child labor definitions, first
consisted only labor market work while second included both domestic household child work
plus labor market work. The results of this study revealed that children (both male and female
child) of local civilians more wanted to involved in labor activity (both house work plus
market work) than others non-indigenous, more male child involved in labor activity than
female child under first definition of child labor while more female child engaged in labor
activity under both definitions, gender discrimination lead to less female child enrollment in
school, children resided in rural areas have 30% more chances to remain out of school. They
also concluded that gender of headship holder not influenced the decision of child labor or
schooling, parents qualification brought significant impact on child schooling (especially for
male child), number of pre-school age children negatively associated with school enrollment
decision. The results of this study suggested public pre-school age children care centers and
civil education system promote the school participation of girls while flexible school
educational policies must be made in rural areas which facilitate the needs of farm holding
families (particularly during the peak periods of child labor demand).

Ahmad (2012) analyzed the relationship between poverty, education and child labor in
Aligarh city of India. In this study author explored mostly children involved in non-formal
activities (i-e dhabas work, rag pickers, vendors, etc.) in this city so, all the possible factors
that might influence child labor are age and gender differences, religion, education standard,
educational achievements of family, size of family, family work status, family income except
child work, child contribution in family income, structure of work, wage rates, work timing,
preference towards kinds of work. The results of this study showed child labor positively
related with age and quantity of children, low family income, low parents educational
achievements, low educational standard, higher offered wage, better work environment and
also work timing. He also concluded Muslim children more involved in labor activity than
Hindu. He suggested Govt. made those policies which compel parents to keep their children
away from labor market (i-e provision of school as well as technical education centers).

Sarkar and Sarkar (2012) examined what are the reasons behind the prevalence of child labor
with decreasing poverty. In this study authors included both paid and unpaid activity children
performed in labor market and examined the impacts of higher income inequality under
decreased poverty rate on child labor and child schooling. The author of this study
investigated that income inequality positively influenced child labor, income inequality
inversely related with child schooling decision (low level of human capital formation) and
child working hours increased at low value of wealth distribution rank, while the child
schooling hours decreased. They also concluded that in poor economies income inequality
increased severity of both child labor and low child schooling problems. The results of this
study recommended that avoid child labor ban policies which usually distracted the parents
towards child schooling decision and promote the public welfare programs that enhanced the
quality of schooling.

Heymann et al. (2013) explored the role of child labor legislation (practiced in 2008 and
2012) and its impacts on secondary school enrollment rate of children. In this study authors
empirically analyzed the effectiveness of minimum age child labor law and its impacts on
child admission in secondary school. The results of this study revealed that mostly children
allowed to start work at the age of more than or equal to fifteen years in rich countries as
compared to poor countries, child labor legislation more influenced the female child
secondary school enrollment rate than male child in rich countries. They also found that this
minimum child work age law brought significant results regarding child compulsory school
educational policies. The results of this study suggested that extension in minimum child
work age and promotion of secondary school education considered the best way to escape
from poverty trap.

Kumar (2013) examined the role of gender disparity and parent’s child preference and its
effects on child labor and child schooling. In this study author explored the financial position
(holding of non-labor income) of household and its effects on male child preference function,
female child marriage expenditures and earning function bias. The author of this study found
that higher income parents distributed non labor income (i-e bequest) more equally among
male and female child, promoted child investment equally and reduced gender inequality
while low income parents not spent equally among both children, they mostly preferred male
child investment than female and female child marriage expenditures positively influenced
child work while reverse true for schooling. The results of this study recommended that there
was need to make such policies which uplift the status poor families that further condemn
gender inequality from labor market, changed the parent’s male child preference and reduced
the female child marriage expenditures in specific low income localities.

Malik (2013) examined whether poverty might affect child schooling and child labor in 30
states of India. In this study, author constructed the wealth index which is a combination of
different items that a household used in routine life, to estimate the economic status of each
household in these states. He used different characteristics of school attainment (i-e never
enrolled in school, enrolled in school, drop out ratios, interest of children and left school
before completing primary, secondary and matric standard) to measure the association of it
with poverty. The results of this study shows that poor economic states having high
percentage of never enrolled in school, dropout rates and left school before completing
primary, secondary and matric standard as compared to good economic states. He suggested
Govt. took initiative for promotion of compulsory school education programs as well as
brought betterment in social economic environment of schools in economically deprived
region of these states.

Onyemauwa et al. (2013) studied the poverty status of household and its impacts on children
participation in labor activity in Isoko North of Delta state. In this study authors discussed the
poverty and social economic factors and its role in determine child labor in this state. The
results of this study revealed that more women household headship holder than men, age
determined the economic activity of head of household, education status of household head
positively influenced the children education, poverty gap greater under the women headship
as compared to men headship, similarly poverty gap also higher under middle age (33 and 39)
as compared to higher age (70 and 77) and household poverty along with child labor
negatively influenced the formal education status of household head. They also concluded
that poor people engaged in farming activity that’s why only farmer expenditures influenced
the poverty and household poverty status positively influenced the child labor activity. The
results of this study suggested that promotion of vocational and formal education declined
poverty as well as child labor in this state.

W.A and T.N (2013) studied the effects of household poverty status on child labor
performance among household in Nigeria. The main objective of this study analyzed the
different types of activities in which children engaged, different forms of characteristics like
child(age, sex, interest towards education, relation to head of household and disability),head
of household(age, sex, family size, education status, total income and poverty head count)
and community(residency area, distance to school and labor market),reasons or determinants
of child labor and household poverty status depend on children participation in labor market.
The result of this study revealed that children mostly engaged in hawking activity, they work
to support their low income parents, low income family children more involved in labor
activity as compared to non-low income family children, children worked more hours under
the female headship as compared to male, elder children worked more hours as compared to
younger children and as age of children increased working hours increased at declining rate.
They concluded urban leaving children worked more hours and distance from labor markets
negatively affected child labor.

Webbink et al. (2013) studied the role of household and context factors affecting child labor
in 221 districts of 18 developing countries. They analyzed the situation of child labor at
domestic, districts and national level and discussed the role of context factors which included
resources (income/assets, parent’s education and work status), structure (child quantity, birth
Oder, child rank and urbanization) and culture (parent’s preference towards labor and women
status). The results of this study revealed child labor (both male and female) inversely related
with higher education standard of parents, father engaged in high nonfarm work, and more
assets holding of household. They also concluded that mother work status and absence of
father more positively influenced female child labor, child labor more directly link with age
(specifically boys); male children of large age difference parent (father age minus mother
age) less involved in labor activity and in urban areas mother education strongly influenced
the decision of child labor.

Chanda (2014) analyzed the impact of domestic child labor on child household poverty level
in Lusaka city of Zambia. He examined children(i-e mostly girls) participate in domestic
house work belongs to those families suffered dangerous disease like HIV/Aids or unable to
meet both ends meet, children engage in this activity remained away from many bad evils or
crimes(i-e destitution, street begging, thefts and drug addiction, etc.).The result of this study
revealed that child domestic work leads more poverty among children and decline the
chances of enrolled in school or to get technical skills to uplift their future status, so drop out
ratio high for girls as compared to boys. The study suggested that Govt. of Zambia and NGOs
create more institutions of technical and vocational training programs for parents as well as
their children’s similarly; shelter homes must be made for orphans and vulnerable children’s.

Qureshi et al. (2014) examined whether the magnitude of poverty, demographic factors and
parental background influence the decision of child labor and school enrollment in Pakistan.
In this study the term child work defined as a 5-14 years child work in any formal or informal
sector in industry, while three types of factors are discuss which might influenced the
decision of work or school, first is poverty factor measured directly(through consumption
expenses of a household) and indirectly(through access to electricity, sewerage system and
number of rooms in a house),second demographic factors(i-e including number of family
members, gender, region and elder income earner) and third parental factor(i-e including
employment status(either self-employed or employee) and education status). The results of
this study revealed that size of family and number of elder income earners significant positive
impact on child work, male children working more than female in both regions, similarly
boys have more capacity to work and got education at the same time than girls(more girls
than boys fall in this category of neither work no school),parents education(especially father)
significant positive impact on child schooling, employer position of both parents decline the
chances of child labor, while employee position of mothers brought significant positive
impact on both decisions(work or school),inflation as well as other proxies of poverty
positively related with child labor and negatively with child schooling. They suggested
poverty reduction strategies and cash transfer programs especially to mothers may decline
child labor force participation and enhanced school enrollment.

Bandara et al. (2015) studied whether the significant variation in income and non-income
affected situation of child labor in Tanzania. In this study authors defined the term non-
income shocks as the sudden death of household family member and examined its direct as
well as indirect effects on children welfare (i-e education plus health) while the term income
shocks defined as the variations in weather (its effects on agriculture sector) and labor market
conditions. The results of this study revealed that income shocks not only affect the children
work and schooling decision but also brought variations in time allocation of children,
household savings in bank negatively related with child labor and agriculture shocks also
raise the other household family member working hours. They also found that non-income
shocks promote the more children (particularly for male child than female) working hours
and declined the living status of household while household asset holding not seriously
influenced the effects of such shocks. The results of this study suggested that unexpected
agriculture shocks control measures helpful to reduce such problems while for non-income
shocks there is need to establish those schemes which raise household education and
indirectly reduced child labor.

Berenger and Chouchane (2015) studied the role of gender discrimination and its impacts on
child labor and child schooling decision in South Sudan and Sudan. They examined girl’s
involvement regarding school attainment as well as in other activities low in South Sudan,
while male child labor high in Sudan. The study showed school involvement and gender
discrimination mostly prevail in urban areas of these countries. To measure how household
characteristics (i-e gender, education and employment status) impacts on child labor and
schooling decision authors used bivariate probit model. The study found that higher
education level of head of household and mother bring positive impacts on decision of child
schooling even both are not economically active. In their study, they suggested that time
relaxation education programs made for those children who belong to large land holding
families similarly, income generating and education policies especially for women control
child labor indirectly.

Landmann and Frolich (2015) explored whether the health insurance assistance scheme
detriment the labor activity of children in Pakistan. In this study authors discussed the effects
of economic hardship shocks on household health and children labor activity decision while
for removing such effects they analyzed the role of health insurance scheme. According to
this scheme shock effected household submitted the health expenses bill to the organization
and after verification organization refunded the same amount to the household. The results of
this study showed that insurance scheme positively associated with better child health while
such scheme negatively related with children involved in dangerous labor activity and work
duration and their wages. They also found that insurance scheme brought more influential
results for male child (they more involved in labor activity) as compared to female child so,
male child school participation enhanced and work duration declined. This insurance scheme
is least beneficial for female child school attainment as compared to male child.

Le and Homel (2015) examined the role of child labor and its effects on school performance
of children in rural Vietnam. In this paper authors recognized the term child labor as
unskilled female child worked for average wage in the same community and examined its
impacts on school achievements (i-e ranked as poor, average, good and excellent.) while
different indicators used estimate economic and financial position of household. The authors
of this study found child labor inversely related with school performance, girls more involved
in labor activity as compared to boys that lead to low school grades and high dropout rates of
her, more difference in children age of a household less involved in labor activity, tall
heighted children posed the more capability of achieved good grades, children of low
economic households more involved in labor activity, parents qualification strong positive
impact on child school achievements, children resides at hills less enrolled in school as
compared to other resides. They also concluded that children of minority groups more
participated in labor market and less school achievements as compared to majority groups
household. The authors of this suggested certain educational policies made which decline the
gender discrimination and brought innovative changes in parent’s attitude towards the female
literacy investment decision. This study ignored the children of small heighted (naturally)
wealthier household and height is not a good indicator to correctly determine the household
status impacts on child labor or school achievements.

Lima et al. (2015) employed the altruistic behavior of parents and link of child labor with
wealth paradox in rural Pakistan. In this paper authors discussed wealth paradox, according to
this paradox large land holding household prefer their own child bear all farm managing
responsibilities rather than hire outside labor, their children involved in child labor activity
while zero or small land holding household children went to school. The authors of this study
investigated that child labor positive influenced with wealth paradox, in case of tolerated
parents child(both male and female) working hours declined as assets ownership enhanced
while in case of non-tolerated parents male child working hours declined under more small
land holding possession as compared to girls. They also concluded that wealth paradox exists
only in non-tolerated parents while luxury axioms (i-e low income parents have no option but
to send their children for work) useful only when examined child labor in tolerated
households. The result of this study suggested public welfare policies made which combat
child labor and change the attitude of parents.

Putnick and Bornstein (2015) studied whether child labor seems to be a hurdle in school
enrollment decision in low and middle income countries. This study employed three forms of
activities usually household children preformed (inside excessive domestic work, work
outside the house, and family work) and examined the impacts of these forms on school
enrollment separately, while the effects of this link moderating through gender and country
level analysis. The authors of this study investigated that in these countries all types of child
labor negatively related with school enrollment while children engaged in outside work less
or insignificant with school enrollment and work outside the house more prevent children to
enrolled in school as compared to other forms. They also concluded that child labor consider
not real barriers of school enrollment in certain countries. The empirical results of this study
suggested that government and NGOs made those policies which promote the universal
primary education and declined poverty in these low middle income countries.

Abdullahi et al. (2016) examined whether poverty affects the situation of child labor in 42
developing countries of world. In this study authors basically used luxury axiom (low income
parents sent their children for work) and substitution axiom (adult and child are perfect
substitute) to examined the link between child labor and poverty. The result of this study
contradicted the positive association between child labor and poverty and, supported the
wealth paradox (i-e children belongs to large land holding families more engaged in work
while small land holding goes to school).So, they found that poverty is not the root cause of
child labor and large land holdings promoted child labor in these selected countries. The
authors of this study suggested government of these developing countries establish
constitution or legislation to overcome child labor problem.

He (2016) analyzed the association between children market involvement and school
participation in Gansu province of China. In this study author explored the link between past
child labor activity and future exam (math and language only) grades achievements and the
influenced of past exam grade achievements on future child labor activity. The author of this
study found that own house work negatively related with child (particularly of female child)
grades achievements, low income household children more suffered in own house work than
high income, while child working capability, local teacher efficiency , mother wished her
children obtained more education and educational expenditures positively related with school
performance. According to him a child (specifically male child) who work greater than one
hour declined the more chances of better school grades as compared to child who did not
work and higher income villagers more supported their children to achieved best grade. He
also concluded that past school performance not significantly influenced the current child
work activity and fathers qualification inversely related with child school performance.

2.3 Conclusion

In literature everyone has attempted to discover the relationship between child labor, child
schooling and household poverty by holding in mind the goals of their study, which are
diversified within countries and persons. In developing countries like Pakistan children
involve in labor activity either to supplement their family income or low interest in education.
In this study an effort has been to determine the other factors which simultaneously
influenced child labor, child schooling and household poverty

In order to find out the determinants each of three terms models are made in subsequent
chapter. In child labor model my work is different from previous studies in the sense that in
determining the factors or elements of child labor passed education of working children,
children interest in school education and life cycle of household head age are also taken along
with other variables. In exploring factors of child schooling dependency ratio, children
interest in education and female male ratio are taken as new variables. Similarly in finding
the elements of household poverty mode of grocery purchase, total personal expenses, outside
home working hours and number of working person are also taken as explanatory variables
along with other variables.