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Permitting the Compensation of Birth Mothers for Adoption Expenses and its Impact on Adoptions

Author

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  • Wallace Cullen T.

    (Department of Economics and Finance, Georgia College & State University, Milledgeville, GA, USA)

Abstract

For seven decades, states have passed legislation to regulate the exchange of funds in the adoption process by either enabling or prohibiting prospective adoptive parents from compensating a matched birth mother for adoption-related expenses. In 1940, no state codes contained provisions for adoption compensation. By the mid-1980s, nearly half of states had passed such legislation, and today, 45 states have such laws. Leveraging this variation in state adoption laws governing compensation, I estimate how the allowance of monetary transfers affects the number of infant adoptions in a two-stage difference-in-differences framework. Results indicate that the number of private infant adoptions is not affected by the passage of such laws, and estimates are robust across multiple specifications. The findings suggesting that non-fiscal concerns or uncertainty in the matching process may overshadow potential compensation of medical, legal, or living expenses.

Suggested Citation

  • Wallace Cullen T., 2022. "Permitting the Compensation of Birth Mothers for Adoption Expenses and its Impact on Adoptions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 22(3), pages 573-600, July.
    • Handle: RePEc:bpj:bejeap:v:22:y:2022:i:3:p:573-600:n:1
    DOI: 10.1515/bejeap-2022-0010
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    More about this item

    Keywords

    infant adoptions; adoption expenses; family policy; adoption policy;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law

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