Simultaneous Analysis of Child Labour and Child Schooling: Comparative Evidence from Nepal and Pakistan

This study investigates the key determinants of child labour hours and child schooling experience paying special attention to the interaction between the two. A significant methodogical feature that distinguishes the present study from previous investigations is that this analysis recognises the joint endogeneity of child labour, child schooling and child poverty. The study is conducted on Nepalese and Pakistani data, and the results are compared. A key empirical finding, with significant policy implications, is the sharp trade off between child labour and child schooling. Another common feature of both countries is the gender bias in favour of boys schooling, though the bias is much larger in case of Pakistan. * I am grateful to Geoffrey Lancaster for his research assistance for this paper. This research was supported by a grant from the Australian Research Council.