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Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective

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Author Info

  • Doepke, Matthias

    ()
    (Northwestern University)

  • Krüger, Dirk

    ()
    (University of Pennsylvania)

Abstract

We investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire outcome may be inefficient, there are usually better policies to cure these inefficiencies than the imposition of a child-labor ban. Given this finding, we investigate the potential political-economic reasons behind the emergence and persistence of child-labor legislation. Our investigation is based on a structural dynamic general equilibrium model that provides a coherent and uniform framework for our analysis.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3259.

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Length: 51 pages
Date of creation: Dec 2007
Date of revision:
Publication status: published in: Peter Rupert (ed.), Frontiers in Family Economics, Bingley: Emerald, 2008
Handle: RePEc:iza:izadps:dp3259

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Related research

Keywords: education; labor restrictions; child labor;

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References

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  1. Stephen L. Parente & Richard Rogerson & Randall Wright, 2000. "Homework in Development Economics: Household Production and the Wealth of Nations," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 680-687, August.
  2. Sylvain Dessy & Stephane Pallage, 2000. "Child Labor and Coordination Failures," Cahiers de recherche CREFE / CREFE Working Papers, CREFE, Université du Québec à Montréal 109, CREFE, Université du Québec à Montréal.
  3. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, American Economic Association, vol. 88(3), pages 412-27, June.
  4. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2001. "Child Labor: Theory, Evidence, and Policy," Working Papers, Research Seminar in International Economics, University of Michigan 474, Research Seminar in International Economics, University of Michigan.
  5. Pallage, Stephane & Zimmermann, Christian, 2007. "Buying out child labor," Journal of Macroeconomics, Elsevier, Elsevier, vol. 29(1), pages 75-90, March.
  6. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 663-679, August.
  7. Dessy, Sylvain & Knowles, John, 2001. "Why is Child Labor Illegal?," Cahiers de recherche, Université Laval - Département d'économique 0110, Université Laval - Département d'économique.
  8. 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.
  9. Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, Springer, vol. 9(3), pages 347-383, 09.
  10. Matthias Doepke & Fabrizio Zilibotti, 2005. "The macroeconomics of child labor regulation," Staff Report, Federal Reserve Bank of Minneapolis 354, Federal Reserve Bank of Minneapolis.
  11. Eric V. Edmonds & Nina Pavcnik, 2005. "Child Labor in the Global Economy," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 19(1), pages 199-220, Winter.
  12. Dirk Krueger & Jessica Tjornhom Donohue, 2005. "On The Distributional Consequences Of Child Labor Legislation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 785-815, 08.
  13. Moshe Hazan & Binyamin Berdugo, 2005. "Child Labor, Fertility and Economic Growth," Development and Comp Systems 0507002, EconWPA.
  14. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, Elsevier, vol. 64(1), pages 81-102, February.
  15. Greenwood, J. & Rogerson, R. & Wright, R., 1993. "Household Production in Real Business Cycle Thoery," RCER Working Papers 347, University of Rochester - Center for Economic Research (RCER).
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Citations

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Cited by:
  1. Doepke, Matthias, 2013. "Exploitation, Altruism, and Social Welfare: An Economic Exploration," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9509, C.E.P.R. Discussion Papers.
  2. Dessy, Sylvain & Knowles, John, 2008. "Why is child labor illegal?," European Economic Review, Elsevier, Elsevier, vol. 52(7), pages 1275-1311, October.
  3. Doepke, Matthias & Zilibotti, Fabrizio, 2009. "International Labor Standards and the Political Economy of Child Labor Regulation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7196, C.E.P.R. Discussion Papers.
  4. Matthias Doepke & Fabrizio Zilibotti, 2009. "Do International Labor Standards Contribute to the Persistence of the Child Labor Problem?," NBER Working Papers 15050, National Bureau of Economic Research, Inc.
  5. Matthias Doepke, 2007. "The Research Agenda: Matthias Doepke on the Transition from Stagnation to Growth," EconomicDynamics Newsletter, Review of Economic Dynamics, Review of Economic Dynamics, vol. 8(2), April.

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