This paper provides an explanation for the existence of child labour which relies on the imperfect enforcement of compulsory schooling laws. In the presence of complementarities in the production of human capital that justify legislative intervention, mandatory measures ensure that coordination failures are solved so that all parents send their children to school and the socially optimal equilibrium is reached. However, if enforcement of legislation is too low, multiple equilibria emerge. In this case, compulsory schooling laws may have adverse welfare effects on all households. Copyright Blackwell Publishers Ltd and the Board of Trustees of the Bulletin of Economic Research, 2004.
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Find related papers by JEL classification: J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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Giorgio Bellettini & Carlotta Berti Ceroni & Gianmarco I.P. Ottaviano, 2003.
"Child Labor and Resistance to Change,"
Working Papers
2003.79, Fondazione Eni Enrico Mattei.
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Other versions:
Giorgio Bellettini & Carlotta Berti Ceroni & Gianmarco I. P. Ottaviano, 2005.
"Child Labour and Resistance to Change,"
Economica,
London School of Economics and Political Science, vol. 72(3), pages 397-411, 08.
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