Long term effect of teenage birth on earnings: Evidence from a British cohort study

2016

We use data from the 1970 British Cohort Study and evaluate the effect of teenage motherhood on hourly earnings at age 30, 34, 38, and 42 using alternative non-experimental estimation methods including linear regression, matching methods, and Heckman sample selection models. We conclude that teenage motherhood has a significant negative long-term effect on hourly wages. At age 42, teenage mothers earn 12% less than other women and 29% less than women who have not had any children. When compared to non-teenage mothers, the pay penalty reduces over time and becomes insignificant on the long term.