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Teenage Childbearing and the Welfare State

Author

Listed:
  • Andra Filote

    (Department of Economics, University of Konstanz)

  • Georgi Kocharkov

    (Department of Economics, University of Konstanz, Germany)

  • Jan Mellert

    (Department of Economics, University of Konstanz)

Abstract
Teenage childbearing is a common incident in developed countries. However, the occurrence of teenage births is much more likely in the United States than in any other industrialized coun- try. The majority of these births are delivered by female teenagers coming from low-income families. The hypothesis put forward here is that the welfare state (a set of redistributive in- stitutions) plays a significant role for teenage childbearing behavior. We develop an economic theory of parental investments and risky sexual behavior of teenagers. The model is estimated to fit stylized facts about income inequality, intergenerational mobility and sexual behavior of teenagers in the United States. The welfare state institutions are introduced via tax and pub- lic education expenditure functions derived from U.S. data. In a quantitative experiment, we impose Norwegian taxes and/or education spending in the economic environment. The Nor- wegian welfare state institutions go a long way in explaining the differences in teenage birth rates between the United States and Norway.

Suggested Citation

  • Andra Filote & Georgi Kocharkov & Jan Mellert, 2017. "Teenage Childbearing and the Welfare State," Working Paper Series of the Department of Economics, University of Konstanz 2017-01, Department of Economics, University of Konstanz.
    • Handle: RePEc:knz:dpteco:1701
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Teenage risky sexual behavior; teenage birth rates; progressive taxation; education; redistribution;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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