Abstract: | The adult earnings of women and the age at which they initiated childbearing are well known to be positively correlated. Most previous research on teenage mothers has emphasized that early births reduce later earnings. This article explores whether the causality might run in the opposite direction: whether the expectation of low adult wages might increase the probability of teenage childbearing. Using the National Longitudinal Survey of Youth, and treating teenage motherhood, wages and education as jointly determined, this investigation gives strong support to the idea that low wages contribute to teenage childbearing. I also explore two popular policy proposals for reducing the incidence of teenage childbearing: reducing transfer income and providing sex education courses. The former has only a very small effect on teenage childbearing; the latter is significant only for black adolescents. |