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A large body of work in educational economics displays the tenuous relationship between school inputs and cognitive achievement. Among others, the inability to establish a strong link has been attributed to the difficulty of controlling for attributes such as ability, motivation, and interest. Against this background, and inspired by work in economics and educational psychology, the authors examine whether a child's interest in school has a bearing on educational success. The panel data estimates, based on Portuguese data, show that after controlling for socioeconomic background, school inputs, and time-invariant unobservable traits, children with high levels of interest are 6-10 percentage points less likely to fail as compared with children with low and medium levels of interest.

The current debate on child labour focuses on developing countries. However, Portugal is an example of a relatively developed country where child labour is still a matter of concern as between 8% and 12% of Portuguese children may be classified as workers. This paper studies the patterns of child labour in Portugal and assesses the consequences of working on the educational success of Portuguese children. The analysis controls for typically unobserved attributes such as a child's interest in school and educational ambitions and uses geographical variation in policies designed to tackle child labour and in labour inspection regimes to instrument child labour. We find that economic work hinders educational success, while domestic work does not appear to be harmful. Furthermore, after controlling for a host of socio-economic variables, factors such as a child's interest in school and educational ambitions have a large effect on boosting educational success and reducing economic work. (Contains 8 tables.)