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

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Author Info
Doepke, Matthias
Zilibotti, Fabrizio

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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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3733.

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Date of creation: Feb 2003
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Handle: RePEc:cpr:ceprdp:3733

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Related research
Keywords: child labour dynamic general equilibrium fertility inequality political economy transition

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

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  1. Kevin H. O'Rourke & Ahmed S. Rahman & Alan M. Taylor, 2007. "Trade, Knowledge, and the Industrial Revolution," The Institute for International Integration Studies Discussion Paper Series iiisdp219, IIIS. [Downloadable!]
    Other versions:
  2. Jeremy Greenwood & Ananth Seshadri, 2002. "Technological Progress and Economic Transformation," Economie d'Avant Garde Research Reports 3, Economie d'Avant Garde. [Downloadable!]
    Other versions:
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