In the absence of regulation, children will probably be forced by parents to enter the labor market too early. While a dependent, the parent can extract the entirety of a child's income. However, a child seeking to maximize lifetime income should probably invest the time in education. But all this gets very hairy, as labor is often a form of education: apprenticeship.
Possibly the regulation should be that parents lose government assistance given to families if a child is working.
We might need a very weird financial instrument in which a parent can take out a loan ostensibly to benefit the family that the child is obligated to pay back.
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