Do youth non-marital childbearing choices reflect income and relationship expectations?

Barbara Wolfe, University of Wisconsin-Madison
Robert Haveman, University of Wisconsin-Madison
Karen M. Pence, Federal Reserve Board
Jonathan Schwabish, Congressional Budget Office

Abstract

We hypothesize that teen nonmarital birth events are influenced by adolescent girls' perceptions of the consequences of their choices. Two such consequences are explored: (1) a teen's expected future marriage and cohabitation relationships and (2) the present value of expected future income. We also measure the effects of the characteristics of the teen, her prior choices, her family, her neighborhood, and the social and economic environment in which she lives. The results, based on the Michigan Panel Study of Income Dynamics, suggest that teens place greater weight on the relationship consequences than the income consequences, but that both consequences influence their nonmarital birth choices.