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Lecture8 - Rise of Legislation Effects of Laws Instrumental...

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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling Returns to Education and Compulsory Schooling Laws American Economic History University of California, Berkeley Department of Economics September 23, 2010 Econ 113 (UC Berkeley) Lecture 8 9/23/2010 0 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling Today’s Agenda: Child Labor and Returns to Education U.S. invested substantially in its public schools More schools per capita, and earlier expansion of high schools High levels of enrollment, increasing substantially early 20 th century What role did the state play in the rise of public school enrollment? How important were compulsory schooling and child labor laws? Why were these laws passed? How did these laws affect the returns to education? Why are so many economists interested in these laws? Econ 113 (UC Berkeley) Lecture 8 9/23/2010 1 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling Child labor rampant in U.S. following industrialization Econ 113 (UC Berkeley) Lecture 8 9/23/2010 2 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling Rise and fall of child labor in the U.S. Children typically worked out of economic necessity Child labor grew in importance as manufacturing and agriculture did Children were source of cheap labor and were considered less rebellious Fall of child labor: declined during late 19 th and early 20 th centuries New technologies and immigrants supplanted demand for child labor From 1880 to 1930, child labor rate fell by over 75% By late 1800s, child laborers were 7% of working, urban population Econ 113 (UC Berkeley) Lecture 8 9/23/2010 3 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling What did child labor laws regulate? Child labor laws: created rules and minimum ages for employing children State level laws, unconstitutional as federal issue (although attempted) Goal: to protect children from more dangerous lines of work Included industries of manual labor such as mining Also included inappropriate lines of work such as serving liquor Employers were typically subject to a fine for violating the law Laws often not enforced in agriculture or working at home Econ 113 (UC Berkeley) Lecture 8 9/23/2010 4 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling Chronology of child labor laws 1837: Massachusetts passed first law, aimed at educating children in factories Children under 15 had to attend 3 months of school that year to work Pre-1880 laws: penalties were weak and minimal law enforcement 1900: 44 states and territories had child labor laws of some type Only 24 states had minimum age limits for manufacturing, ages 10-14 1914: all states had a child labor law Previous decade saw most amount of new age minimums Most states finally enacted provisions for inspectors to enforce laws Econ 113 (UC Berkeley) Lecture 8 9/23/2010 5 / 35
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Rise of Legislation Effects of Laws Instrumental Variables Returns to Schooling What did compulsory schooling laws regulate?
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