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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

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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. Sylvain Dessy & Stephane Pallage, 2000. "Child Labor and Coordination Failures," Cahiers de recherche CREFE / CREFE Working Papers 109, CREFE, Université du Québec à Montréal.
  3. 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.
  4. Pallage, Stephane & Zimmermann, Christian, 2007. "Buying out child labor," Journal of Macroeconomics, Elsevier, vol. 29(1), pages 75-90, March.
  5. Dirk Krueger & Jessica Tjornhom Donohue, 2007. "On The Distributional Consequences Of Child Labor Legislation," Working Papers id:975, eSocialSciences.
  6. 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.
  7. Basu, Kaushik, 1998. "Child labor : cause, consequence, and cure, with remarks on International Labor Standards," Policy Research Working Paper Series 2027, The World Bank.
  8. Matthias Doepke & Fabrizio Zilibotti, 2005. "The macroeconomics of child labor regulation," Staff Report 354, Federal Reserve Bank of Minneapolis.
  9. Ranjan, Priya, 2001. "Credit constraints and the phenomenon of child labor," Journal of Development Economics, Elsevier, vol. 64(1), pages 81-102, February.
  10. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-27, June.
  11. 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.
  12. Dessy, Sylvain & Knowles, John, 2001. "Why is Child Labor Illegal?," Cahiers de recherche 0110, Université Laval - Département d'économique.
  13. Matthias Doepke, 2001. "Accounting for Fertility Decline During the Transition to Growth," UCLA Economics Working Papers 804, UCLA Department of Economics.
  14. 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.
  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. Dessy, Sylvain & Knowles, John, 2007. "Why Is Child Labor Illegal?," IZA Discussion Papers 2901, Institute for the Study of Labor (IZA).
  2. 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.
  3. 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.
  4. 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.
  5. Doepke, Matthias, 2013. "Exploitation, Altruism, and Social Welfare: An Economic Exploration," IZA Discussion Papers 7449, Institute for the Study of Labor (IZA).

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