The impact of trade liberalization on child labor in Pakistan

Abstract

This study investigates the impact of trade liberalization on child labor using micro-level datasets of urban Pakistan. It is anticipated that when economies are open to external competition, this will benefit the poor in those economies, and hence lead to a contraction of child labor. We analyze the geographical differences in the effects of trade policy directed toward the reduction of import tariffs. Trade liberalization and child labor are associated in the case of Pakistan. Trade liberalization reduces child labor in urban Pakistan. Our findings also reveal a statistically significant association between lagged tariffs and child labor. Our findings are robust to various control variables.