Working Paper: CEPR ID: DP5675
Authors: V. Bhaskar; Bishnupriya Gupta
Abstract: Using the US Commissioner of Labor Survey of 1890, we examine household decisions and parental altruism vis-a-vis their children. Contrary to Parsons and Goldin (1989), we find that parental location choices were dictated by constraints rather than the desire to exploit child labour opportunities. We also find signfiicant income effects on child labour supply, indicating that rising affluence played an important part in the secular decline of child labour. We also find that the effects of childrens' income on their own consumption are weak, once child labour is controlled for.
Keywords: Child Labour; Parental Altruism
JEL Codes: D13; J13; N31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental income (D31) | Child labor supply (J82) |
| Economic conditions (E66) | Parental decisions regarding child labor (J88) |
| Child labor supply (J82) | Household consumption (D10) |
| Parental decisions regarding child labor (J88) | Migration to higher wage industries (J69) |
| Income effects on child labor supply (J22) | Decline of child labor (J88) |
| Children's income (J13) | Children's bargaining power within the household (D19) |