A Comparative Analysis of Rural and Urban Child Labor in Pakistan

The paper presents a comparative analysis of determinants of child labor in urban and rural areas. A simple theoretical model (Probit) of household’s decision about child’s time allocation is used. From the econometric data sets of urban and rural areas of two districts of Pakistan, evidence is provided suggesting that urban and rural children have different determinants of child labor reflecting their different socio-economic background, e.g. education of head of household (as a continuous as well as binary variable) impacts the child schooling positively but the effect of continuous variable is much stronger for urban households, employment status of head of household impacts the child schooling positively in urban areas but negatively inrural areas. Mother’s employment is complement to child schooling in urban areas but substitute in rural areas. It negatively impacts the child labor in urban but positively in rural areas. Poverty affects the child schooling three times more strongly in rural households than urban ones. Gender discrimination is schooling participation is higher in rural households but in labor force participation of children, it is higher in urban households. Part-time labor force participation of children increases by incremental change in age in urban householdsbut it decreases in rural households. A few number of determinants are same for both groups of children. For policy implication different sets of policies are required for urban and rural areas to enhance child welfare.