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How Does Adolescent Fertility Affect the Human Capital and Wages of Young Women?

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Author Info
D. Klepinger
S. Lundberg
R. Plotnick

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Abstract

The consequences of teen childbearing for the future well-being of young women remain controversial. In this paper, we model and estimate the relationship between early childbearing and human capital investment, and its effect on wages in early adulthood. Taking advantage of a large set of potential instruments for fertility—principally state- and county-level indicators of the costs of fertility and fertility control—we use instrumental variables procedures to generate unbiased estimates of the effects of early fertility on education and work experience, and the effects of these outcomes on adult wages. For both black and white women, adolescent fertility substantially reduces years of formal education and teenage work experience. White teenage mothers also obtain less early adult work experience than young women who delay childbearing. We also find that, through these human capital effects, teenage childbearing has a significant effect on a young woman’s market wage at age 25. Our results, unlike those of recent “revisionist” studies, suggest that public policies that reduce teenage childbearing are likely to have positive effects on the economic well-being of many young mothers and their families.

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Paper provided by University of Wisconsin Institute for Research on Poverty in its series Institute for Research on Poverty Discussion Papers with number 1145-97.

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Handle: RePEc:wop:wispod:1145-97

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sanders Korenman & David Neumark, 1990. "Marriage, Motherhood, and Wages," NBER Working Papers 3473, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. 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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  6. Blackburn, McKinley L & Bloom, David E & Neumark, David, 1993. "Fertility Timing, Wages, and Human Capital," Journal of Population Economics, Springer, vol. 6(1), pages 1-30.
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  7. D. Klepinger & S. Lundberg & R. Plotnick, . "Instrument selection: The case of teenage childbearing and women's educational attainment," Institute for Research on Poverty Discussion Papers 1077-95, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
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  11. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
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  12. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  13. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May. [Downloadable!] (restricted)
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  16. Lundberg, Shelly & Plotnick, Robert D, 1995. "Adolescent Premarital Childbearing: Do Economic Incentives Matter?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 177-200, April. [Downloadable!] (restricted)
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  17. David Neumark & Sanders Korenman, 1992. "Sources of Bias in Women's Wage Equations: Results Using Sibling Data," NBER Working Papers 4019, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. repec:att:wimass:199312 is not listed on IDEAS
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  20. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January. [Downloadable!] (restricted)
  21. Charles R. Nelson & Richard Startz, 1988. "Some Further Results on the Exact Small Sample Properties of the Instrumental Variable Estimator," NBER Technical Working Papers 0068, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  22. Rosenzweig, Mark R & Schultz, T Paul, 1985. "The Demand for and Supply of Births: Fertility and Its Life Cycle Consequences," American Economic Review, American Economic Association, vol. 75(5), pages 992-1015, December. [Downloadable!] (restricted)
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  24. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January. [Downloadable!] (restricted)
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  26. Klepinger, D. & Lundberg, S. & Plotnick, R., 1994. "Adolescent Fertility and the Education Attainment of Young Women," Discussion Papers in Economics at the University of Washington 94-5, Department of Economics at the University of Washington.
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  27. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arnaud Chevalier & Tarja K. Viitanen, 2000. "The Long-Run Labour Market Consequences of Teenage Motherhood," Keele Department of Economics Discussion Papers (1995-2001) 2000/03, Department of Economics, Keele University. [Downloadable!]
  2. David Figlio & Jens Ludwig, 2000. "Sex, Drugs, and Catholic Schools: Private Schooling and Non-Market Adolescent Behaviors," NBER Working Papers 7990, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Gordon B. Dahl, 2005. "Early Teen Marriage and Future Poverty," NBER Working Papers 11328, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. 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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  5. 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!]
  6. Marco Francesconi, 2007. "Adult Outcomes for Children of Teenage Mothers," IZA Discussion Papers 2778, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Shelly Lundberg & Elaina Rose, 1998. "The Determinants of Specialization Within Marriage," Discussion Papers in Economics at the University of Washington 0048, Department of Economics at the University of Washington. [Downloadable!]
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  8. Christine Siegwarth Meyer & Swati Mukerjee, 2007. "Investigating Dual Labor Market Theory For Women," Eastern Economic Journal, Eastern Economic Association, vol. 33(3), pages 301-316, Summer. [Downloadable!]
  9. Olivia Ekert-Jaffe & Shoshana Grossbard, 2007. "Does Community Property Discourage Unpartnered Births?," IZA Discussion Papers 2816, Institute for the Study of Labor (IZA). [Downloadable!]
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