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On The Distributional Consequences Of Child Labor Legislation

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  • Dirk Krueger

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  • Jessica Tjornhom Donohue

Abstract

A dynamic heterogeneous agent general equilibrium model is constructed to quantify the effects of child labor legislation on human capital accumulation and the distribution of wealth and welfare. Crucial model elements include a human capital externality in the market sector, an informal home production sector in which child labor laws cannot be enforced, uninsurable idiosyncratic income risk, borrowing constraints, and endogenous wage and interest rate determination in general equilibrium. The model is calibrated to US data around 1880 [NBER WP 10347].

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:975.

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Date of creation: May 2007
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Handle: RePEc:ess:wpaper:id:975

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Keywords: child labor; general equilibrium model; welfare; schooling; income;

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  2. Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(482), pages 810-828, October.
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  12. Matthias Doepke & Fabrizio Zilibotti, 2005. "The Macroeconomics of Child Labor Regulation," American Economic Review, American Economic Association, vol. 95(5), pages 1492-1524, December.
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  18. Levison, Deborah & Moe, Karine S. & Marie Knaul, Felicia, 2001. "Youth Education and Work in Mexico," World Development, Elsevier, vol. 29(1), pages 167-188, January.
  19. Stephane Pallage & Christian Zimmermann, 2000. "Buying Out Child Labor?," Cahiers de recherche CREFE / CREFE Working Papers, CREFE, Université du Québec à Montréal 123, CREFE, Université du Québec à Montréal.
  20. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
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