Perverse Consequences of Well Intentioned Regulation: Evidence from India's Child Labor Ban

摘要: Although bans against child labor are a ubiquitous policy tool, there is very little empirical evidence on their effectiveness. In this paper, we examine the consequences of India’s landmark legislation labor, Child Labor (Prohibition and Regulation) Act 1986. Using data from employment surveys conducted before after ban, using age restrictions that determined whom ban applied to, show relative probability increases wages (relative to adult wages) decrease ban. Our main specification relies comparing changes in work probabilities over time for children same but with siblings who rendered either eligible or ineligible legal when implemented. The economic activity largest (i) areas where industries targeted by play larger role local markets, (ii) employer inspections higher, (iii) families poorer. These results consistent theoretical model building seminal Basu Van (1998) (2005), use reach subsistence constraints response bans, leading poor utilize more labor. We also find decreases participation schooling (for younger only) no economically meaningful change household outcomes like assets calorie intake.