Compulsory Schooling Laws and the Cure Against Child Labor
15 Pages Posted: 10 Oct 2000
Date Written: January 20, 2004
Abstract
This paper provides an explanation for the existence of child labor which relies on the imperfect enforcement of compulsory schooling laws. In the presence of complementarities in the production of human capital that justify legislative intervention, mandatory measures ensure that coordination failures are solved so that all parents send their children to school and the socially optimal equilibrium is reached. However, if enforcement of legislation is too low, multiple equilibria emerge. In this case, compulsory schooling laws may have adverse welfare effects on all households.
JEL Classification: E62, I28, J24
Suggested Citation: Suggested Citation