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Income Inequality and Early Nonmarital Childbearing

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  • Melissa S. Kearney
  • Phillip B. Levine

Abstract

Using individual-level data from the United States, we empirically investigate the role of lower-tail income inequality in determining rates of early nonmarital childbearing among low socioeconomic status (SES) women. We present robust evidence that young low-SES women are more likely to have a nonmarital birth when they live in places with larger lowertail income inequality, all else held constant. We calculate that differences in the level of inequality are able to explain a sizeable share of the geographic variation in teen fertility rates. We propose a model of adolescent decisionmaking that facilitates the interpretation of our results.

Suggested Citation

  • Melissa S. Kearney & Phillip B. Levine, 2014. "Income Inequality and Early Nonmarital Childbearing," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 1-31.
    • Handle: RePEc:uwp:jhriss:v:49:y:2014:i:1:p:1-31
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    References listed on IDEAS

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    1. Jennifer M. Mellor & Jeffrey D. Milyo, 2001. "Income inequality and health," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(1), pages 151-155.
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    6. George A. Akerlof & Janet L. Yellen & Michael L. Katz, 1996. "An Analysis of Out-of-Wedlock Childbearing in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 277-317.
    7. Gould, Eric D. & Paserman, M. Daniele, 2003. "Waiting for Mr. Right: rising inequality and declining marriage rates," Journal of Urban Economics, Elsevier, vol. 53(2), pages 257-281, March.
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    9. An, Chong-Bum & Haveman, Robert & Wolfe, Barbara, 1993. "Teen Out-of-Wedlock Births and Welfare Receipt: The Role of Childhood Events and Economic Circumstances," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 195-208, May.
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