Trade-off between Child Labour and Schooling in Bangladesh:

Submitted by: Shibbir Khan - Roll: 068 Maruf Ahmad - Roll: 045 S M Dider Ul Kabir chowdhury - Roll: 053 Abdullah Al Maruf - Roll: 092

Submitted to Dr Sayema Haque Department of Economics University of Dhaka

Literwture review : A number of studies attempted to estimate short run and long run relationships between Child Labour and Human Capital Formation in different countries applying different theoretical and methodological constructs. In this section, some of these studies are summarized in terms of their methodologies and findings. In the case of the developed countries

A number of studies attempted to estimate short run and long run relationships between Child Labour and Human Capital Formation in different countries applying different theoretical and methodological constructs. In this section, some of these studies are summarized in terms of their methodologies and findings. In the case of the developed countries

kabayashi, Hideo and Psacharopoulos, George, The Trade-off between Child Labour and Human Capital Formation: A Tanzanian case study, in 'Journal of Development Studies', vol. 35, no. 5, 1999, pp. 120-140.

Using time-log data from a 1993 survey in the United Republic of Tanzania, the research investigates the relationship between child work and human capital development. It found that factors that increase childrens working hours also decrease their hours of study and those hours of work are negatively correlated with studying ability.

Deb, Partha and Furio Rosati, 'Determinants of Child Labor and School Attendance: The role of household unobservable', Department of Economics, Hunter College, New York, December 2002.

This analysis of econometric models distinguishes between observed and unobserved household characteristics as determinants of child labour, school attendance and idleness. It concludes that households with a high propensity to send their children to school are poorer and have less educated parents. Rammohan, Anu, Interaction of Child Labour and Schooling in Developing Countries: A theoretical perspective, in 'Journal of Economic Development', vol. 25, no. 2, December 2000. The study examines human capital investment in rural households of developing countries where child labour is prevalent. The author reports that an increase in child wages, including opportunity costs of schooling, leads to lower education investments

Child Labour and Schooling in Bangladesh: Role of Parental Education* Salma Ahmad, , Monash University , Department of Economics , ISSN 1441-5429 Discussion paper 21/11 ,

This paper examines whether there is any trade-off between child labor hours and child schooling outcomes. By drawing on Bangladesh National Child Labour Survey data, we find that childrens work, even in limited amounts, does adversely affect child human capital. This is reflected in reduced school attendance and age-adjusted school attendance rates. We find that parents do not have identical preferences towards boys and girls schooling decisions. While both, educated mother and father shifts the trade-off towards girls schooling as opposed to market work, the differential impact of mothers education on girls is significantly larger.

Comments by Pushkar Maitra, Glen Harrison and participants at the Monday workshop in the Department of Economics, Monash University, participants at the Australasian Development Economics Workshop 2011 and participants at the 40th Australian Conference of Economists 2011.

Eric V. Edmonds* Department of Economics at Dartmouth College, Institute for the Study of Labor (IZA), and the National Bureau of Economic Research, January 2007 (minor edits, June 2007) in T. P. Schultz and J. Strauss, eds.,

Abstract: In recent years, there has been an astonishing proliferation of empirical work on child Labor. An Econlit search of keywords "child lab*r" reveals a total of 6 peer reviewed journal articles between 1980 and 1990, 65 between 1990 and 2000, and 143 in the first five years of the present decade. The purpose of this essay is to provide a detailed overview of the state of the recent empirical literature on why and how children work as well as the consequences of that work. Section 1 defines terms commonly used in the study of child time allocation and provides a descriptive overview of how children spend their time in low income countries today. Section 2 reviews the case for attention to the most common types of work in which children participate, focusing on that work's impact on schooling, health, as well as externalities

associated with that work. Section 3 considers the literature on the determinants of child time allocation such as the influence of local labor markets, family interactions, the net return to schooling, and poverty. Section 5 discusses the limited evidence on different policy options aimed at influencing child labor. Section 6 concludes by emphasizing important research questions requiring additional research such as child and parental agency, the effectiveness of child labor policies, and the determinants of participation in the "worst forms" of child labor.

Household and context determinants of child labor in 156 districts of 11 developing countries Ellen Webbink, Jeroen Smits, Eelke de Jong Nijmegen Center for Economics (NiCE) , Institute for Management Research in Radboud University They study household and context determinants of child labor for 150,000 children in 11 developing countries, with child labor rates ranging from 2 to over 20 percent. Multilevel analysis showed socioeconomic factors to be still major determinants of child labor, with less child labor in households with more resources and in districts and countries that are more developed. Demographic factors are also important. First-born children and children with more siblings work more. This is also true if a parent is missing. Living in an extended family reduces child labor among girls. Effects of household-level factors depend on characteristics of the context, with stronger child-labor reducing effects under more favorable circumstances. Policy measures should focus on the weakest groups and on strengthening the position of women. The Economic Impact of Child Labour Rossana Galli, University of Lugano, Switzerland International Institute for Labour Studies Geneva The paper contains a theoretical discussion and a literature survey on the economic impact of child labour. Three main categories of economic impact of child labour are analyzed:

1) the effects of child labour at the micro family level, particularly on family poverty both in the short and in the long run; 2) the effects of child labour on long-run growth and social development through a Number of different transmission mechanisms;

3) the international economic effects of child labour Particularly on foreign direct investment; and 4) the effects of child labour on adult labour market.