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Child labour in Pakistan: Addressing supply and demand side labour market dynamics

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  • Ambreen Fatima

Abstract

This article uses empirical evidence, based on labour market indicators, to analyse the factors influencing the incidence of child labour in Pakistan, from both supply and demand sides. The level of demand for child labour is shown to be linked mainly to adult wage levels, the adult unemployment rate in an area, and the size of the informal and agriculture sectors. The supply of child labour is seen to be positively linked to the proportion of adult unemployment in the household. Unlike previous studies, the article analyses both demand and supply side factors in a context of poverty and takes account of the co-existence of formal and informal labour markets. Furthermore, to generalise the issue for a longer span of time (which previous studies fail to do), it adopts the methodology of a pseudo-panel approach based on that proposed by Deaton. This approach makes it possible to pinpoint more accurately the factors, and their interaction, that need to be considered in any effective policy approach to the issue of child labour. To prevent unintended consequences, a multi-faceted development approach is required.

Suggested Citation

  • Ambreen Fatima, 2017. "Child labour in Pakistan: Addressing supply and demand side labour market dynamics," The Economic and Labour Relations Review, , vol. 28(2), pages 294-311, June.
    • Handle: RePEc:sae:ecolab:v:28:y:2017:i:2:p:294-311
    DOI: 10.1177/1035304617690332
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    References listed on IDEAS

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    Cited by:

    1. Bang, James & Mitra, Aniruddha & Abbas, Faisal, 2023. "Remittances and Child Labor in Pakistan: A Tale of Complementarities," GLO Discussion Paper Series 1285, Global Labor Organization (GLO).
    2. Coxhead,Ian & Jayasuriya,Sisira & Kurosaki,Takashi, 2023. "Is female labor immobility holding back industrialization in Pakistan?," IDE Discussion Papers 896, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Awaworyi Churchill, Sefa & Iqbal, Nasir & Nawaz, Saima & Yew, Siew Ling, 2021. "Unconditional cash transfers, child labour and education: theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 437-457.
    4. Shahateet, Mohammed Issa, 2022. "Does child labour increase unemployment and reduce labour force participation? Empirical evidence from Jordan," Children and Youth Services Review, Elsevier, vol. 137(C).

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    More about this item

    Keywords

    Child labour; informal sector; pseudo-panel data analysis; unemployment rate; wage levels;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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