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The role of relative income in the share of children born out-of-wedlock in the USA

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  • Georgios Mavropoulos

    (University of Macedonia)

  • Theodore Panagiotidis

    (University of Macedonia)

Abstract

This paper investigates the non-marital fertility evolution in the USA for the period between 1976 and 2016. Beyond the well-known determinants in this framework, we add and test for the Easterlin relative income hypothesis. Easterlin stresses the role of the material aspirations formed in childhood (denominator) relative to the current economic perspectives (numerator) of young men. That ratio defines the relative income. We employ panel dynamic techniques at the state level. We find a negative and statistically significant effect of the relative income in the share of children born out-of-wedlock. Most importantly, relative income is robust to the inclusion of marriage. The latter may imply a socio-economic mobility perspective.

Suggested Citation

  • Georgios Mavropoulos & Theodore Panagiotidis, 2023. "The role of relative income in the share of children born out-of-wedlock in the USA," Empirical Economics, Springer, vol. 64(3), pages 1105-1120, March.
    • Handle: RePEc:spr:empeco:v:64:y:2023:i:3:d:10.1007_s00181-022-02285-7
    DOI: 10.1007/s00181-022-02285-7
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    More about this item

    Keywords

    Non-marital fertility; Easterlin hypothesis; Relative income;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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