Endogenous Technical Progress and the Emergence of Child Labor Laws
AbstractI develop a theory of technical progress that uncovers sufficient conditions for opposition to the adoption of child labor laws to disappear over time. The supply of child labor comes exclusively from unskilled parents, because of their inability to help their children benefit from formal education, while its demand originates from capitalists-the firms' owners. Because child labor crowds out adult employment, there are always social pressures to ban it. However, such pressures are met by capitalists' opposition. Capitalists oppose the adoption of a ban on child labor because such a ban reduces opportunities for earning a high return on capital. Technical progress, induced by skill accumulation, improves the earning prospects of firms hiring adult workers only, while it reduces those of firms hiring children only. As a result, more capitalists are drawn into the adult labor market, and industrial opposition to a ban on child labor eventually vanishes over time. Provided child labor exhibits skill-enhancing learning-by-doing, policy action to speed up the emergence of child labor laws should therefore focus on education reforms that raise the quality of education school-goers receive, and on political reforms that raise the cost of lobbying legislators against adopting a ban on child labor. However, in countries where child labor provides little or no opportunities for learning-by-doing, no law will emerge unless appropriately targeted poverty alleviation mechanisms are designed, in order to induce unskilled parents to allocate a positive fraction of child's time to schooling.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CIRPEE in its series Cahiers de recherche with number 0317.
Date of creation: 2003
Date of revision:
Other versions of this item:
- Dessy, Sylvain E., 2003. "Endogenous Technical Progress and the Emergence of Child Labor Laws," Cahiers de recherche 0302, Université Laval - Département d'économique.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anker, Richard, 2000. "Conceptual and research frameworks for the economics of child labour and its elimination," ILO Working Papers 346752, International Labour Organization.
- Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
- Douglas A. Galbi, 1997. "Child labor and the division of labor in the early English cotton mills," Journal of Population Economics, Springer, vol. 10(4), pages 357-375.
- Ranjan, P., 1999.
""Credit Constraints and the Phenomenon of Child Labor","
98-99-12, California Irvine - School of Social Sciences.
- Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
- Kremer, Michael & Chen, Daniel L, 2002.
" Income Distribution Dynamics with Endogenous Fertility,"
Journal of Economic Growth,
Springer, vol. 7(3), pages 227-58, September.
- Michael Kremer & Daniel Chen, 2000. "Income-distribution Dynamics with Endogenous Fertility," NBER Working Papers 7530, National Bureau of Economic Research, Inc.
- Dessy, Sylvain E., 2000. "A defense of compulsive measures against child labor," Journal of Development Economics, Elsevier, vol. 62(1), pages 261-275, June.
- Matthias Doepke, 2001.
"Accounting for Fertility Decline During the Transition to Growth,"
UCLA Economics Working Papers
804, UCLA Department of Economics.
- Matthias Doepke, 2004. "Accounting for Fertility Decline During the Transition to Growth," Journal of Economic Growth, Springer, vol. 9(3), pages 347-383, 09.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Glomm, Gerhard, 1997. "Parental choice of human capital investment," Journal of Development Economics, Elsevier, vol. 53(1), pages 99-114, June.
- Moehling, Carolyn M., 1999. "State Child Labor Laws and the Decline of Child Labor," Explorations in Economic History, Elsevier, vol. 36(1), pages 72-106, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).
If references are entirely missing, you can add them using this form.