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The Economics of Nonmarital Childbearing and the Marriage Premium for Children

Author

Listed:
  • Melissa S. Kearney

    (Department of Economics, University of Maryland, College Park, Maryland 20742)

  • Phillip B. Levine

    (Department of Economics, Wellesley College, Wellesley, Massachusetts 02481)

Abstract

A large body of literature exists on the impact of family structure on children's outcomes, typically focusing on average effects. In this review, we build on this with an economic framework that has heterogeneous predictions regarding the potential benefit for children of married parents. We propose that the gains due to marriage from a child's perspective depend on a mother's own level of resources, the additional net resources that her partner brings, and the outcome-specific returns to resources. Data from the Panel Study of Income Dynamics are consistent with the heterogeneous predictions of this framework. In terms of high school completion or avoiding poverty at age 25, the so-called marriage premium for children is highest for children of mothers with high school degrees and mothers in their early to mid-20s. For the more advanced outcomes of college completion or high income at age 25, the marriage premium monotonically increases with observed maternal age and education.

Suggested Citation

  • Melissa S. Kearney & Phillip B. Levine, 2017. "The Economics of Nonmarital Childbearing and the Marriage Premium for Children," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 327-352, September.
    • Handle: RePEc:anr:reveco:v:9:y:2017:p:327-352
    DOI: 10.1146/annurev-economics-063016-103749
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    Cited by:

    1. Brian Goesling & Max Gross & Julieta Lugo-Gil, "undated". "Integrating Healthy Marriage and Relationship Education into an Employment Training Program: The Impacts of Career STREAMS," Mathematica Policy Research Reports 3044ffa8e9be4fdd807a197ff, Mathematica Policy Research.
    2. Moroni, Gloria & Nicoletti, Cheti & Salvanes, Kjell Gunnar & Tominey, Emma, 2025. "Gender equality through marriage," Discussion Paper Series in Economics 20/2025, Norwegian School of Economics, Department of Economics.
    3. Asquith, Brian J. & Mast, Evan, 2025. "Birth dearth and local population decline," Regional Science and Urban Economics, Elsevier, vol. 115(C).
    4. Petrusevich, Margarita, 2024. "The effects of alcohol sale bans on children: The case of Russia," Journal of Health Economics, Elsevier, vol. 97(C).
    5. Luis Diaz-Serrano & Sabine Flamand, 2023. "Attitudes towards single parents’ children in private and state-dependent private schools: experimental evidence," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 14(2), pages 223-242, June.

    More about this item

    Keywords

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    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • 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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