We investigate the positive and normative consequences of child-labor restrictions foreconomic aggregates and welfare. We argue that even though the laissez-faire outcome maybe inefficient, there are usually better policies to cure these inefficiencies than the impositionof a child-labor ban...

We present a general model of child labor that incorporates the various componentspresented in the literature as explanations for its existence. Our proposal is to mitigate thephenomenon by encouraging temporary emigration...