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The effects of minimum wages on teenage birth rates

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  • Lenhart, Otto

Abstract

This study adds to a recently growing number of studies evaluating non-employment effects of minimum wages. Using U.S. data between 1995 and 2017, a period with 380 state-level minimum wage increases, I estimate the effect on teenage birth rates (age 15–19). I find that a $1 increase in minimum wages is associated to a 2.8–3.4 percent decline in teenage birth rates, which corresponds to 1.1 to 1.3 fewer birth per 1,000 young women. My analysis shows that the effects are driven by states that also have state Earned Income Tax Credit (EITC) laws in place. Furthermore, I show that minimum wages are also associated with a 2.9 percent decline in birth rates among women aged 20 to 24, and with smaller but statistically significant declines in birth rates for women between the ages 25 to 39. These findings suggest that, rather than delaying childbearing age, minimum wage reduce overall birth rates.

Suggested Citation

  • Lenhart, Otto, 2021. "The effects of minimum wages on teenage birth rates," Economics Letters, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:ecolet:v:198:y:2021:i:c:s0165176520304304
    DOI: 10.1016/j.econlet.2020.109670
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    References listed on IDEAS

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    3. William Schneider & Lindsey Rose Bullinger & Kerri M. Raissian, 2022. "How does the minimum wage affect child maltreatment and parenting behaviors? An analysis of the mechanisms," Review of Economics of the Household, Springer, vol. 20(4), pages 1119-1154, December.

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    More about this item

    Keywords

    Minimum wage; Teenage birth rate; Earned income tax credit;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • I10 - Health, Education, and Welfare - - Health - - - General

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