Mexico’s Child Labor Ban: Impact on Employment, Education, and Policy Lessons

The 2015 labor law reform in Mexico, which raised the minimum working age from 14 to 15 and imposed strict penalties, led to a 16% decrease in child labor and a 2% increase in school enrollment, with long-term benefits for education and employment. The study highlights that effective enforcement, penalties, and school incentives are crucial for successful child labor bans.

Researchers from the University of Wuppertal and the Leibniz Institute for Economic Research (RWI-Essen) conducted a comprehensive study on the impact of Mexico’s 2015 labor law reform. This reform raised the minimum working age from 14 to 15, introduced stricter employment regulations, and imposed severe penalties for violations. While child labor bans are widely promoted in international policy, their effectiveness is often debated due to enforcement challenges and potential unintended consequences. This study, using a difference-in-differences (DiD) approach and Mexican Labor Force Survey (ENOE) data from 2013 to 2019, provides valuable insights into how legal changes affect school attendance and employment.

Sharp Decline in Child Labor and Rise in School Enrollment

The findings reveal that the 2015 labor law reform led to a 1.2 percentage point reduction in child labor and a 2.2 percentage point increase in school enrollment. These figures translate to a 16% decrease in child labor and a 2% rise in school participation compared to pre-reform levels. Interestingly, a similar amendment in 2014, which only increased the minimum working age without enforcement mechanisms, had no significant impact on employment but resulted in a small increase in school enrollment. This contrast underscores the importance of strict enforcement and penalties for violations. The effectiveness of the 2015 reform was enhanced by severe employer penalties, increased labor inspections, and public awareness campaigns.

Sector-Specific Impacts and Labor Shifts

The study found that the ban primarily reduced employment in paid jobs, particularly in the manufacturing and services sectors, while agricultural work remained largely unchanged. The lack of impact on agriculture is likely due to subsistence work exemptions, allowing children to continue working in family-run farms. Contrary to concerns that banning child labor might force children into more hazardous or hidden jobs, there was no evidence of increased underground employment. Additionally, older siblings and parents did not compensate for the lost child labor, indicating that the law did not lead to significant household labor redistribution.

A striking long-term trend emerged: individuals prevented from working at age 14 continued to have lower employment rates even after reaching adulthood. They were less likely to work full-time and less likely to be employed while out of school, suggesting that the ban helped shift children towards longer educational paths and better employment trajectories. These findings align with previous research demonstrating that early interventions in education yield long-term benefits in productivity and human capital accumulation.

Gender and Regional Disparities in the Reform’s Effects

The study revealed notable gender differences in the law’s impact. The reduction in child labor was more pronounced among girls, largely because girls tend to work in manufacturing and services, where the ban was strictly enforced. Boys, on the other hand, were more likely to be employed in agriculture, where enforcement was weaker. The reform also resulted in a slight increase in wages for those who continued to work, likely because child labor restrictions reduced supply, making hiring underage workers more expensive.

The study also examined regional and socioeconomic disparities. The labor ban was most effective in urban areas and among low-income families, where formal employment is more easily regulated. In contrast, rural areas saw minimal impact, reinforcing concerns that child labor laws primarily target visible employment while leaving informal, household-based work unaddressed. The research also found that in regions with frequent labor inspections, child labor declined more significantly, highlighting the crucial role of enforcement in policy success.

Policy Implications and the Future of Child Labor Laws

The findings provide strong policy lessons for governments considering child labor reforms. The study shows that raising the minimum working age alone is insufficient—effective implementation requires strict penalties, school attendance incentives, and active enforcement. Moreover, enforcement must extend beyond urban and industrial sectors to reach rural and informal work settings.

One pressing concern is the ongoing debate in Mexico about lowering the minimum working age in agriculture from 18 to 16. Given that agriculture often involves hazardous conditions, including heavy physical labor and exposure to toxic chemicals, the study strongly suggests that lowering the age should only be considered if there are strict safety measures and education guarantees in place.

The 2015 labor law reform successfully reduced child labor and increased school enrollment, but challenges remain in addressing rural and informal work sectors. The study highlights the importance of comprehensive child labor policies that combine legal restrictions, education incentives, enforcement mechanisms, and targeted interventions for vulnerable populations. The results reinforce that when properly enforced, child labor bans can lead to long-term educational and economic benefits, helping children transition towards better life opportunities and improved human capital development.