Chapter 1

Introduction

1.1 Statement of the Problem

Child labor seems to be primal issue in developing countries like Pakistan. Child labor means
that school age child involved in such occupations which put off their educational
achievements and ruin mental or physical capability. Child own house work (normal routine
work) not included in child labor definition because that does not affect child schooling and
health. Similarly, the term harmful work ignore in this study because parents loved their
siblings and they are not ready to send for such work which beyond their capacity. According
to International Labour Organization (ILO) assessments frequency of child labor greater in
Sub-Saharan African countries and 85 million children involved in harmful labor activity.
The specific form of child labor based on child age, mode of labor activity, working spell and
intent of work. In developing countries after maturity a child is allowed to take part in labor
market while in case of developed countries after completion of school education a child is
allowed to work (ILO).

Child labor survey was made in Pakistan in 1996, according to estimates of this survey 3.3
million children were occupied in labor activity out of which 33.2% children are literate.
Male working child more educated than female child. Almost 70% working children involved
in unpaid family business labor activity, 23% employees and 7% are self-employed. This
estimates also shows that 46% children working greater than 35 hours, about 54% children
worked to assist their family income, 27% worked to supplement their family income and
14% worked due to absence of other family members.

According to the evaluations of Punjab Bureau of Statistics MICS (2007-2008) there are total
5870 children under the age of 5 to 14 years in Multan districts among which 3750 goes to
school and remaining 2120 either engage in labor or leisure. In Multan districts 11 percent
children involved in labor activity among which 2 percent received income and remaining
received nothing MICS (2007-2008).

In literature there are several studies with respect to pakistan made on child labor, child
schooling and household poverty in different ways i-e Ray (2000), Rosati and Rossi (2001),
Ali and Khan (2003), Khan (2003), Toor (2005), Mansuri (2006), Hou (2009), Qureshi et al.
(2014), Landmann and Frolich (2015) and Lima et al. (2015).

In Pakistan Child labor directly related with household poverty and head education brought
significant impact on child schooling. When the income of household (specifically the
layman) fall, head is unable to meet the basic needs so, head make decision that their
offspring must participate in labor market Ray (2000). The same views were presented by Ali
and Khan (2003), Hou (2009) and Qureshi et al. (2014) in different manners. While some
studies support the wealth paradox (which negate the luxurious assumption of Basu and Van
(1999)) presented by Heady and Bhalotra (2003), according to this paradox child labor
increases up to a certain level of land holding after this it will start decrease. Large land
holding household employ inside home cheap labor (i-e their children) and save income
before they reached a certain level after this they prefer child schooling. While the small land
holding household sent their children to school that is because they have not enough land to
involve their children in it Lima et al. (2015) and Abdullahi et al. (2016).

The present study discussed how the children and household features determine child labor,
child schooling and household poverty. Child labor is not only due to poverty but there are
certain reasons that create the problem of child labor like child not interest in school,
schooling zero valuable in future and learn skills. So, child labor decision not only pulls by
children but also household characteristics. The determinants of child labor, child schooling
and household poverty are interconnected to each other.

In developing countries education is regard as the formidable determinant of human training.

Women are fall back men of availing education facilities. Presence of greater gender disparity
female are less or unable to avail educational opportunities. So, presence of more girls in a
household is decrease child schooling Ali and Khan (2003). A number of studies show that
child labor and child schooling inversely related to each other, according this child can do
one thing in single time; they cannot perform both duties at the constant time Toor (2005),
Amin et al. (2006), Wahba (2006) and Basu et al. (2010). Similarly this study also discussed
low child schooling is not only due to household poverty but there are also certain factors like
household head education, number of female in house, number of non-wage earners and child
interest in education. Children interest in school education is also a factor that determines
either he/she continues education or move to labor market. In literature there is no study
made on children interest in school education and household dependency ratio, that’s why it
is included in present study to analyze its impacts on child schooling decision.

The present study also discusses the elements of household poverty by assuming various
household attributes. Household characteristics includes mode of household wage, per capita
income, received non-labor income, number of household working person and outside home
working hours. Mostly person worked on daily wages so, they bought necessary goods daily.
The unique finding of this study is that number of household working person positively
related with poverty that is because mostly household working person engaged in same
family business which yield no personal income and high personal expenses of working
persons left less income for other family members.

1.2 Objectives of the Study

The foremost aim of this study is to cognized the main factors affecting child labor, child
schooling and household poverty other than presented in previous literature. The important
objectives of this study are given below.

1) To understand why children involve in labor activity

2) To determine how household and children characteristics influence child labor
decision.
3) To study how household characteristics are causing low child schooling in selected
district.
4) To identify the factors those are affecting household poverty in Pakistan.
5) Provide adequate recommendations to policy makers, regional heads on how they can
control household poverty in Multan districts.

1.3 Scope of the Study

This research will valuable to identify the characteristics that cause child labor, low child
schooling and household poverty in Multan district. This study will focus the effects of
household characteristics which further influence child labor and schooling. This work will
also useful to propose a best policy implication how to remove household poverty, child labor
and low child schooling in Pakistan economy.
1.4 Data and Methodology

This research work based on primary data accumulated from 200 households of two selected
Tehsils of Multan district. Analysis of this study organized in two sections. In the first
section, researcher has formulated elementary data analysis. While in the second section
quantitative analysis has made to determine the factors associated with child labor, low child
schooling and household poverty. The quantitative analysis is a combination of three set of
analysis first statistical analysis, second correlation analysis and third empirical analysis in
which we use logistic model.

1.5 Organization of the Study

The research work of this study is arranged as follow: Chapter 1 introduction present a
concise introduction of subject, purpose, scope and constraint of the study. Chapter 2 is
theoretical framework in which researcher discoursed the different economic theories of child
labor, child human capital and household poverty. Literature review is discussed in chapter
3rd, this provide reviews around child labor, child schooling and household poverty that
prevail in world with specific position of Pakistan. In chapter 4 th data and methodology has
been discussed. Results and discussion have been made in chapter 5th, which further
comprised on statistical, correlation and empirical analysis of primary data that has been
collected from two selective tehsils of Multan district. Logistic model used to explore the
empirical determinants of child labor, child schooling and household poverty. While
conclusions and policy implications have been deliberate in chapter 6th.