Blacks and the family cap: pregnancy, abortion, and spillovers
Sabia, J.J.
Journal of Population Economics 21(1): 111-134
2006
ISSN/ISBN: 0933-1433 Document Number: 576091
While reducing out-of-wedlock childbearing is a central goal of welfare reform, most policymakers prefer achieving this objective via a reduction in nonmarital pregnancy rates rather than through an increase in the incidence of abortion. Using aggregate state-level data from 1984 to 1998, I estimate fixed effects models that allow for autocorrelated and heteroskedastic disturbances to examine the association between the family cap and nonmarital birth, pregnancy, and abortion rates. I find robust evidence that the family cap is associated with a reduction in nonmarital birth rates, particularly among black women. This reduction is driven by a reduction in nonmarital pregnancy rates rather than through an increase in abortion or marriage rates. These findings suggest that that the stigmatizing effect of the family cap may influence the nonmarital pregnancy decisions of black women.