# Breaking the cycle: long-term socio economic determinants of child labour in SAARC countries

## TL;DR

This study explores how long-term socio-economic factors influence child labor in SAARC countries and suggests policy solutions to address the issue.

## Contribution

The study introduces a panel cointegration approach to analyze the long-term relationship between child labor and socio-economic factors in SAARC countries.

## Key findings

- Education and healthcare improvements significantly reduce child labor.
- Economic growth and urbanization have complex, country-specific effects on child labor.
- Unemployment and foreign direct investment influence child labor, requiring targeted policies.

## Abstract

Child labour remains a critical issue in SAARC countries, driven by various socio-economic factors. While previous studies have explored individual determinants, limited research has been conducted on their collective long-term impact. Understanding how structural and economic conditions shape child labour trends is essential for designing effective policy interventions.

This study engages panel cointegration techniques to examine the long-term relationship between child labour and key socio-economic drivers in SAARC countries. It assesses the impact of education, access to healthcare, economic conditions, labour market dynamics, foreign investment, and urbanisation on the prevalence of child labour.

The findings confirm a stable, long-term relationship between child labour and these determinants in each SAARC country. Improvements in education and health significantly reduce child labour. However, economic growth and urbanisation have complex, country-specific effects. Higher unemployment and increased FDI may also influence child labour, emphasising the need for targeted policy responses.

The study highlights the significance of ongoing investments in education and healthcare. Labour market reforms are crucial to mitigate the impact of unemployment, while inclusive economic policies ensure that growth benefits vulnerable populations. Targeted strategies for FDI and urbanisation are necessary to prevent unintended consequences on child labour. Combating child labour in SAARC countries requires a multi-sectoral approach. Regional collaboration is crucial for sharing best practices, developing unified strategies, and enhancing cross-border initiatives. Holistic policies integrating education, health, and economic planning are key to reducing child labour.

The online version contains supplementary material available at 10.1186/s12889-025-25399-w.