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Child labor legislation: effective, benign, both, or neither?

Author

Listed:
  • Federico A. Bugni

    (Department of Economics, Duke University, 213 Social Sciences, Box 90097, Durham, NC 27708, USA)

Abstract
This paper explores the relationship between the state-specific child labor legislation and the decline in child labor that occurred in the US between 1880 and 1900. The existing literature that addresses this question uses a difference-in-difference estimation technique. We contribute to this literature in two ways. First, we argue that this estimation technique can produce misleading results due to (a) the possibility of multiplicity of equilibria and (b) the non-linearity of the underlying econometric model. Second, we develop an empirical strategy to identify the mechanism by which the legislation affected child labor decisions. In particular, besides establishing whether the legislation was effective or not, our analysis may determine whether the legislation constituted a benign policy or not, i.e., whether the legislation constrained the behavior of families (not benign) or whether it changed the labor market to a new equilibrium in which families voluntarily respected the law (benign).

Suggested Citation

  • Federico A. Bugni, 2012. "Child labor legislation: effective, benign, both, or neither?," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(3), pages 223-248, October.
    • Handle: RePEc:afc:cliome:v:6:y:2012:i:3:p:223-248
    DOI: 10.1007/s11698-011-0073-4
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    Citations

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    Cited by:

    1. Prashant Bharadwaj & Leah K Lakdawala & Nicholas Li, 2020. "Perverse Consequences of Well Intentioned Regulation: Evidence from India’s Child Labor Ban," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1158-1195.
    2. Fagernäs, Sonja, 2014. "Papers, please! The effect of birth registration on child labor and education in early 20th century USA," Explorations in Economic History, Elsevier, vol. 52(C), pages 63-92.

    More about this item

    Keywords

    Child labor; Child labor legislation; Treatment effect estimation; Difference-in-difference estimation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913

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