The Macroeconomics of Child Labor Regulation

We develop a positive theory of the adoption of child labor laws. Workers who compete with children in the labor market support a child labor ban, unless their own working children provide a large fraction of family income. Fertility decisions lock agents into specific political preferences, and mul...

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Bibliographic Details
Published inThe American economic review Vol. 95; no. 5; pp. 1492 - 1524
Main Authors Doepke, Matthias, Zilibotti, Fabrizio
Format Journal Article
LanguageEnglish
Published Nashville American Economic Association 01.12.2005
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Summary:We develop a positive theory of the adoption of child labor laws. Workers who compete with children in the labor market support a child labor ban, unless their own working children provide a large fraction of family income. Fertility decisions lock agents into specific political preferences, and multiple steady states can arise. The introduction of child labor laws can be triggered by skill-biased technological change, which induces parents to choose smaller families. The theory can account for the observation that, in Britain, regulations were first introduced after a period of rising wage inequality, and coincided with rapid fertility decline.
Bibliography:ObjectType-Article-2
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ISSN:0002-8282
1944-7981
DOI:10.1257/000282805775014425