Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective

51 Pages Posted: 3 Nov 2008

See all articles by Matthias Doepke

Matthias Doepke

Northwestern University - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Dirk Krueger

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

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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.

Keywords: child labor, education, labor restrictions

JEL Classification: I28, J13, J22, J24, J88, O40

Suggested Citation

Doepke, Matthias and Krueger, Dirk, Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective. IZA Discussion Paper No. 3259, Available at SSRN: https://ssrn.com/abstract=1294511 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Matthias Doepke (Contact Author)

Northwestern University - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Dirk Krueger

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
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215-573-2057 (Fax)

HOME PAGE: http://www.econ.upenn.edu/~dkrueger/

National Bureau of Economic Research (NBER)

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Centre for Economic Policy Research (CEPR)

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