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...

This paper investigates the evolution of earnings inequality in urban China from 1989 to2006. After decomposing the variance of log of earnings into transitory and permanent twoparts, we find that both components are important contributors to the total variance ofearnings. We also find that the...