Child Labor and Schooling Decisions in Urban and Rural Areas: Comparative Evidence from Nepal, Peru, and Zimbabwe

Abstract

Summary This study sheds some light on the causes of child labor using crosscountry empirical data. We find that while poverty is the main cause of child labor in rural areas, there is a general lack of support for the poverty hypothesis in urban areas. Similarly, improving access to credit has a greater potential for alleviating child labor and enhancing school attendance in rural areas. On the other hand, availability of alternative childcare options promises greater impact in urban areas. Finally, the evidence from all countries suggests that efforts to bolster adult educational level and wage will help curb the prevalence and intensity of child labor and improve the likelihood that children stay in school.