Matthias Doepke · American Economic Review 2005 · theoretical macroeconomic model · n=?

The Macroeconomics of Child Labor Regulation

Cited 234 times in the scientific literature.

Level 5 - mechanism / opinion, no new human data

Theoretical economic model without empirical testing (Level 5 by design analogy, not clinical CEBM).

OpenAlex W1999338836 · doi:10.1257/000282805775014425 · record verified 2026-08-28

What was done

The authors developed a positive macroeconomic and political economy model to analyze the adoption of child labor laws. The framework models household fertility decisions, labor market competition between adult workers and children, and the impact of skill-biased technological change on family size and political preferences, using historical observations from Britain as a qualitative reference case.

What was found

The abstract provides no empirical numbers or statistical estimates. Theoretically, adult workers competing with child labor favor bans unless their own children provide a critical share of household income. Because fertility decisions lock parents into distinct political preferences, multiple steady states can occur. Skill-biased technological change reduces desired family size, thereby triggering political support for child labor regulation, consistent with historical British patterns of wage inequality and fertility decline.

Why it matters

The paper provides a theoretical mechanism explaining why child labor bans emerge endogenously alongside technological transitions and demographic shifts rather than solely through exogenous policy shifts.

Limits

The study is a theoretical modeling paper and does not report empirical data, econometric estimation, or statistical significance. Calibration details, sample sizes, and quantitative validation are not provided in the abstract.

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