The trade-off between child labour and human capital formation: A Tanzanian case study

We investigate the degree ro which there is a trade-off between child labour and human capital formation using time-log data of children from a Tanzanian household survey. We find that a trade-off between hours of work and study exists, and hours of work tend ro be more affected by social conditions than hours of study. Hours of work are negatively correlated to reading and mathematical skills through the reduction of human capital investment activities, indicating a trade-off between child labour and human capital. The results point up the complexity of the issue and the need for detailed time allocation data.