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AER - Previous Issues
AER - December 2005

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American Economic Review

Vol. 95, No. 5, December 2005


The Macroeconomics of Child Labor Regulation
Matthias Doepke and Fabrizio Zilibotti

Article Citation
Doepke, Matthias, and Fabrizio Zilibotti. 2005. "The Macroeconomics of Child Labor Regulation." American Economic Review, 95(5): 1492–1524.
DOI:10.1257/000282805775014425

Abstract
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.

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Authors
Doepke, Matthias
Zilibotti, Fabrizio