Determinants of Child Labour: The Case of Andhra Pradesh

This study examines the extent to which child labour is explained by the main determinants proposed in the literature, focusing on three determinants: income shocks, household composition and parental preferences. In addition, it examines the role of child-specific characteristics, such as psycho-social abilities and nutritional endowment. While there is extensive literature on child labour determinants, it is predominantly theoretical and tends to treat each determinant in isolation from the others. This study finds that children work more in response to income shocks; that child labour is sensitive to household composition in terms of the age and gender of the other children; and, in urban areas, that it varies according to the bargaining power of women in the household. Investigation of child-specific fixed effects further suggests that nutritional status, reading skills and ability to get along with peers may also be relevant to whether and how much children work.