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Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective

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  • Matthias Doepke
  • Dirk Krueger

Abstract

In this paper we investigate the positive and normative consequences of child-labor restrictions for economic aggregates and welfare. We argue that even though the laissez-faire equilibrium 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 National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12665.

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Date of creation: Nov 2006
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Publication status: published as Rupert, Peter (ed.) Frontiers in Family Economics. Bingley, UK: Emerald Group Publishing Limited, 2008.
Handle: RePEc:nbr:nberwo:12665

Note: CH ED EFG PE LS
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  1. Moshe Hazan & Binyamin Berdugo, 2002. "Child Labour, Fertility, and Economic Growth," Economic Journal, Royal Economic Society, vol. 112(482), pages 810-828, October.
  2. Ranjan, P., 1999. ""Credit Constraints and the Phenomenon of Child Labor"," Papers 98-99-12, California Irvine - School of Social Sciences.
  3. Matthias Doepke, 2001. "Accounting for Fertility Decline During the Transition to Growth," UCLA Economics Working Papers 804, UCLA Department of Economics.
  4. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2001. "Child Labor: Theory, Evidence, and Policy," Working Papers 474, Research Seminar in International Economics, University of Michigan.
  5. Dessy, Sylvain & Knowles, John, 2007. "Why Is Child Labor Illegal?," IZA Discussion Papers 2901, Institute for the Study of Labor (IZA).
  6. Eric V. Edmonds & Nina Pavcnik, 2005. "Child Labor in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 199-220, Winter.
  7. Jean-Marie Baland & James A. Robinson, 2000. "Is Child Labor Inefficient?," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 663-679, August.
  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. 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, vol. 108(4), pages 680-687, August.
  10. Sylvain Dessy & Stephane Pallage, 2000. "Child Labor and Coordination Failures," Cahiers de recherche CREFE / CREFE Working Papers 109, CREFE, Université du Québec à Montréal.
  11. Stephane Pallage & Christian Zimmermann, 2000. "Buying Out Child Labor?," Cahiers de recherche CREFE / CREFE Working Papers 123, CREFE, Université du Québec à Montréal.
  12. Dirk Krueger & Jessica Tjornhom Donohue, 2007. "On The Distributional Consequences Of Child Labor Legislation," Working Papers id:975, eSocialSciences.
  13. Matthias Doepke & Fabrizio Zilibotti, 2005. "The Macroeconomics of Child Labor Regulation," American Economic Review, American Economic Association, vol. 95(5), pages 1492-1524, December.
  14. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  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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Cited by:
  1. Doepke, Matthias & Zilibotti, Fabrizio, 2009. "International Labor Standards and the Political Economy of Child Labor Regulation," CEPR Discussion Papers 7196, C.E.P.R. Discussion Papers.
  2. Doepke, Matthias, 2013. "Exploitation, Altruism, and Social Welfare: An Economic Exploration," IZA Discussion Papers 7449, Institute for the Study of Labor (IZA).
  3. Matthias Doepke, 2007. "The Research Agenda: Matthias Doepke on the Transition from Stagnation to Growth," EconomicDynamics Newsletter, Review of Economic Dynamics, vol. 8(2), April.
  4. Matthias Doepke & Fabrizio Zilibotti, 2010. "Do international labor standards contribute to the persistence of the child labor problem?," IEW - Working Papers 467, Institute for Empirical Research in Economics - University of Zurich.
  5. Dessy, Sylvain & Knowles, John, 2008. "Why is child labor illegal?," European Economic Review, Elsevier, vol. 52(7), pages 1275-1311, October.

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