Teenage Pregnacy in Mexico: Evolution and Consequences

We analyze the consequences of a teenage pregnancy event in the short- and long-run in Mexico. Using longitudinal and cross-section data, we match females who got pregnant and those that did not based on a propensity score. Several balancing tests and specifications indicate that the main assumptions to estimate the average treatment effect on the treated using a propensity score are satisfied. In the short-run, we find that a teenage pregnancy causes a decrease of 0.6-0.8 years of schooling, lower attendance to school, less hours of work and a higher marriage rate. At the household level, our results show that there is no effect in parental hours of work or income per capita. In the long-run, we show evidence of a loss in years of education of 1-1.2 and of a higher probability of being married, but also of higher probability of being separated or divorced. Finally, we find that household income per capita is lower at least in the long-run.