Determinants of the Outcomes of a Household’s Decision Concerning Child Labor or Child Schooling

Child labour is an issue of global concern. It assumes more importance when it comes to developing countries like Pakistan. This study attempts to highlight this child labor issue in Mardan District of Khyber Pakhtunkhwa, a province of Pakistan. The analysis collects information through modified questionnaire by randomly interviewing households. Using Multinomial Logit model, the analysis finds that probability of child schooling is high, in case a child is already enrolled in primary school education. Similarly, child schooling is more likely when monthly income of a family head increases. However, with the increase in ‘age’ and ‘monthly income’ of a child, the probability of child labour tends to increase. Additionally, Poor financial position of a family also increases the chances for child’s labour activities. Furthermore, the analysis finds variables like “initiative of work by child himself” and “working capacity” increase the chance for a child to combine school with labour activities. That is, if a child engages himself in labour work on permanent basis, such a child is more likely to combine school with labour work to finance his educational expenses. On the contrary, a household prefers his child neither to attend school nor labour work in case of increasing family’s income. That is, in such a situation a household may prefer his child to engage in homecare activities. Finally, the analysis shows that probability of child schooling is high in case a child is living in rural areas. Based on empirical findings, the study suggests few practicable steps to the government for addressing the child labour issue. Opening more primary schools in remote areas and providing vocational training centers to children whose families cannot afford educational expenses, would be helpful in reducing child labour exclusively.