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Teen families, welfare transfers, and the minimum wage: evidence from Canada

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  • Anindya Sen
  • Hideki Ariizumi

Abstract

This study evaluates the impacts of welfare transfers and the minimum wage on teen family formation by pooling provincial data from Canada between 1990 and 2005. OLS estimates suggest that welfare transfers have had limited impact on teen births. On the other hand, a 10% increase in the minimum wage is significantly correlated with a 3%–5% rise in teen birth rates. This finding is explained by further regressions, which reveal that an increase in the minimum wage is significantly associated with (1) higher earnings among male teens, (2) an increase in teen marriage rates, and (3) an increase in fertility among married teens but not among unmarried females. Finally, estimates based on the 2003 and 2005 waves of the Canadian Community Health Surveys demonstrate that married teens are more likely to engage in sex as well as unprotected intercourse in comparison with single teens. Ce mémoire évalue l’impact de l’aide sociale et du salaire minimum sur la formation de familles adolescentes en groupant les données provinciales au Canada pour la période 1990–2005. Les estimés à l’aide de la méthode des moindres carrés ordinaires suggèrent que l’aide sociale a eu un impact limité sur les grossesses d’adolescentes. D’autre part, une augmentation de 10% dans le niveau du salaire minimum est co‐reliée de manière significative à une croissance de 3 à 5% dans les grossesses adolescentes. Ce résultat est expliqué par des calculs additionnels qui montrent qu’une augmentation du salaire minimum est associée de manière significative (1) à des gains plus élevés pour les jeunes hommes adolescents; (2) à un accroissement du taux de nuptialité, et (3) un accroissement du taux de fécondité des couples adolescents mariés mais pas pour les adolescentes non mariées. Enfin, des estimés fondés sur les Enquêtes sur la santé dans les collectivités canadiennes de 2003 et 2005 montrent que les adolescents et adolescentes mariés sont davantage susceptibles d’avoir des relations sexuelles, et des relations sexuelles non‐protégées, que les adolescents et adolescentes non‐mariés.

Suggested Citation

  • Anindya Sen & Hideki Ariizumi, 2013. "Teen families, welfare transfers, and the minimum wage: evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(1), pages 338-360, February.
    • Handle: RePEc:wly:canjec:v:46:y:2013:i:1:p:338-360
    DOI: 10.1111/caje.12004
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    1. Leigh, J. Paul, 2021. "Treatment design, health outcomes, and demographic categories in the literature on minimum wages and health," Economics & Human Biology, Elsevier, vol. 43(C).
    2. David Slichter, 2023. "The employment effects of the minimum wage: A selection ratio approach to measuring treatment effects," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(3), pages 334-357, April.
    3. Tammy Schirle, 2015. "The effect of universal child benefits on labour supply," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 437-463, May.
    4. Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 481-514, May.

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    More about this item

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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