Abstract
Using official household survey data, the authors test two axioms regarding child labour in Nepal. Both the “luxury” and the “substitution” axioms appear to hold in the case of Nepal’s child labour: a household’s higher per capita income reduces child work hours; and the absence from work of an adult household member owing to illness increases child work hours. Girls work more hours than boys. Other variables reducing child work hours are: scholarship provision, private schooling, the presence of siblings at home, and adults’ years of schooling. However, higher consumption is not effective in reducing child work hours.