Dynamics of Poverty, status of Child Labor/schooling in Pakistan: Evidence from Panel Dataset
Author: Adnan Bashir

The present study estimates the impact of poverty, shocks and dynamics of poverty on the status of child schooling and child labor between the ages of 5 to 14 years. The study has utilized the data of Pakistan Panel Household Survey (PPHS) 2010 and Pakistan Rural Household Survey (PRHS) 2001 and 2004. The dependent variable is the status of child schooling and labor with four outcomes, ‘study only’, ‘work only’, ‘both study and work’ and ‘do nothing’ and analysis has been done with bi-variate and multi-variate analysis. Bi-variate analysis carried out with cross tabulation analysis and multi-variate analysis with multinomial regression. Present study carried out, Poverty has positive and significant association with work only because when poverty increases then there are more chances for children to engage with work only. Children of poor households belong in work only as compared to the non-poor households. Here the parental education plays an important role when parents have higher education than more likely children will be engaged with study only. Shock is a major factor and considered as an unexpected event for the society. In case a household receives shock during the last five years then there will be more chances that children will work for the survival of house. This study also estimates the impact of types of shocks including natural shock, business shock, inflationary shock and no shock. In the case of shocks the investment on human capital are decrease and the result is increase the level of child labor. The status of child schooling and labor has been estimated in four categories which include, chronic poor, moving out from poverty, moving in to poverty and non-poor. Dynamics of poverty has been estimated with three rounds in which the first estimates from 2001 and 2010 and in third round finds out the results between 2004 and 2010. Finally, it estimates all three rounds i.e. 2001, 2004 and 2010 with four outcomes, chronic poor, two period poor, one period poor and non-poor. Dependency ratio and household size also has important role on the child schooling and labor. When dependency ratio increases then the investment on education decreases and more likely children will be engaged with work only. In case of increase in the household size, resources are divided in more individual and the investment on children education therefore decreases. Household size has positive and significant association with work only in the case of increased household size. Supervisor: Dr. Shujaat Farooq

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Keywords : Child Labor, Pakistan, Poverty
Supervisor: Shujaat Farooq

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