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Voting with your Children: A Positive Analysis of Child Labour Laws

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  • Zilibotti, Fabrizio
  • Doepke, Matthias

Abstract

We develop a positive theory of the adoption of child-labour regulation, based on two key mechanisms. First, parental decisions on family size interact with their preferences for child-labour regulation. Second, the supply of child labour affects skilled and unskilled wages. If policies are endogenous, multiple steady-states with different child-labour policies can exist. The model is consistent with international evidence on the incidence of child labour. In particular, it predicts a positive correlation between child labour, fertility and inequality across countries of similar income per capita. The model also predicts that the political support for regulation should increase if a rising skill premium induces parents to choose smaller families. A calibration of the model shows that it can replicate features of the history of the UK in the 19th Century, when regulations were introduced after a period of rising wage inequality, and coincided with rapidly declining fertility and rising educational levels.

Suggested Citation

  • Zilibotti, Fabrizio & Doepke, Matthias, 2003. "Voting with your Children: A Positive Analysis of Child Labour Laws," CEPR Discussion Papers 3733, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:3733
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    3. Basu, Kaushik, 2005. "Child labor and the law: Notes on possible pathologies," Economics Letters, Elsevier, vol. 87(2), pages 169-174, May.
    4. Greenwood, Jeremy & Seshadri, Ananth, 2005. "Technological Progress and Economic Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 19, pages 1225-1273, Elsevier.
    5. Dimova, Ralitza, 2021. "The Political Economy of Child Labor," GLO Discussion Paper Series 816, Global Labor Organization (GLO).
    6. Antonio Ciccone & Giovanni Peri, 2003. "Skills’ Substitutability and Technological Progress: U.S. States 1950-1990," CESifo Working Paper Series 1024, CESifo.

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    More about this item

    Keywords

    Child labour; Political economy; Inequality; Fertility; Transition; Dynamic general equilibrium;
    All these keywords.

    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
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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