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The Long-Run Labour Market Consequences of Teenage Motherhood in Britain

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Author Info
Arnaud Chevalier
Tarja K. Viitanen

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Abstract

Common wisdom states that teenage childbearing reduces schooling, labour market experience and adult wages. However, the decisions to be a teenage mother, to quit school, and be less attached to the labour market might all stem from some personal or family characteristics. Using the National Child Development Study (NCDS), we find that in Britain teenage childbearing decreases the probability of post-16 schooling by 12% to 24%. Employment experience is reduced by up to three years, and the adult pay differential ranges from 5% to 22%. The negative impact of teen motherhood on various adult outcomes is not due to some pre-motherhood characteristics; hence policies aiming to encourage return to school and participation in the labour market may be an efficient way to reduce the long-term consequences of teenage pregnancy.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0516.

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Date of creation: Jan 2002
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Handle: RePEc:cep:cepdps:dp0516

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Related research
Keywords: Teenage pregnancy; schooling decisions; wages;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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  1. Hotz, V Joseph & Mullin, Charles H & Sanders, Seth G, 1997. "Bounding Causal Effects Using Data from a Contaminated Natural Experiment: Analysing the Effects of Teenage Childbearing," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 575-603, October. [Downloadable!] (restricted)
  2. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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  3. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-56, December. [Downloadable!] (restricted)
  4. Ribar, David C, 1994. "Teenage Fertility and High School Completion," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 413-24, August. [Downloadable!] (restricted)
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  5. Wolfe, Barbara & Wilson, Kathryn & Haveman, Robert, 2001. "The role of economic incentives in teenage nonmarital childbearing choices," Journal of Public Economics, Elsevier, vol. 81(3), pages 473-511, September. [Downloadable!] (restricted)
  6. Gerald S. Oettinger, 1999. "The Effects of Sex Education on Teen Sexual Activity and Teen Pregnancy," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 606-635, June. [Downloadable!] (restricted)
  7. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  8. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 543-64, September.
  9. Geronimus, Arline T & Korenman, Sanders, 1992. "The Socioeconomic Consequences of Teen Childbearing Reconsidered," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1187-214, November. [Downloadable!] (restricted)
  10. Stephen Cameron & Christopher Taber, 2000. "Borrowing Constraints and the Returns to Schooling," NBER Working Papers 7761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
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  1. Alissa Goodman & Greg Kaplan & Ian Walker, 2004. "Understanding the effects of early motherhood in Britain: the effects on mothers," IFS Working Papers W04/20, Institute for Fiscal Studies. [Downloadable!]
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  2. Ian Walker & Yu Zhu, 2009. "The Causal Effect of Teen Motherhood on Worklessness," Studies in Economics 0917, Department of Economics, University of Kent. [Downloadable!]
  3. Holmlund, Helena, 2004. "Estimating Long-Term Consequences of Teenage Childbearing - An Examination of the Siblings Approach," Working Paper Series 1/2004, Swedish Institute for Social Research. [Downloadable!]
  4. Marco Francesconi, 2007. "Adult Outcomes for Children of Teenage Mothers," IZA Discussion Papers 2778, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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