On The Distributional Consequences Of Child Labor Legislation
AbstractThis article studies the effects of child labor legislation on human capital accumulation and the distribution of wealth and welfare. We calibrate our model to U.S. data circa 1880 and find that the consequences of restricting child labor or providing tax-financed education depend on the main source of individual household income. Households with significant financial assets unambiguously lose from government intervention, whereas high-wage workers benefit most from a child labor ban, and low-wage workers benefit most from free education. Introducing free education results in substantial welfare gains, whereas a child labor ban induces small welfare losses. Copyright 2005 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
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Bibliographic InfoArticle provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 46 (2005)
Issue (Month): 3 (08)
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Other versions of this item:
- Dirk Krueger & Jessica Tjornhom Donohue, 2007. "On The Distributional Consequences Of Child Labor Legislation," Working Papers id:975, eSocialSciences.
- Dirk Krueger & Jessica Tjornhom Donohue, 2004. "On the Distributional Consequences of Child Labor Legislation," NBER Working Papers 10347, National Bureau of Economic Research, Inc.
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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