Daily Archives: 05/13/2012

The Economics of Teenage Pregnancy

 

The Economics of Teenage Pregnancy

Published on Steven Landsburg | The Big Questions: Tackling the Problems of Philosophy with Ideas from Mathematics, Economics, and Physics | shared via feedly mobile

Teenage motherhood is well correlated with poor economic outcomes. This of course need not mean that teenage motherhood causes poor economic outcomes; in fact, Melissa Kearney and Phillip Levine (of U. Maryland and Wellesley College) argue precisely the opposite: Being on a low economic trajectory causes teenage motherhood, and conditional on that original trajectory, teenage motherhood does little economic harm:

Why is the rate of teen childbearing is so unusually high in the United States as a whole, and in some U.S. states in particular? U.S. teens are two and a half times as likely to give birth as compared to teens in Canada, around four times as likely as teens in Germany or Norway, and almost ten times as likely as teens in Switzerland. A teenage girl in Mississippi is four times more likely to give birth than a teenage girl in New Hampshire—and 15 times more likely to give birth as a teen compared to a teenage girl in Switzerland. We examine teen birth rates alongside pregnancy, abortion, and “shotgun” marriage rates as well as the antecedent behaviors of sexual activity and contraceptive use. We demonstrate that variation in income inequality across U.S. states and developed countries can explain a sizable share of the geographic variation in teen childbearing. Our reading of the totality of evidence leads us to conclude that being on a low ec onomic trajectory in life leads many teenage girls to have children while they are young and unmarried. Teen childbearing is explained by the low economic trajectory but is not an additional cause of later difficulties in life. Surprisingly, teen birth itself does not appear to have much direct economic consequence. Our view is that teen childbearing is so high in the United States because of underlying social and economic problems. It reflects a decision among a set of girls to “drop-out” of the economic mainstream; they choose nonmarital motherhood at a young age instead of investing in their own economic progress because they feel they have little chance of advancement.

The full paper is here.

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The left beats up on JP Morgan no matter if its making or losing money

I’m not skeptical of the big banks, but this does make me pause and think for a moment.

ProfessorBainbridge.com

via The left beats up on JP Morgan no matter if its making or losing money.

Bernanke – Assimilated by the Borg?

Limericks Économiques

via Bernanke – Assimilated by the Borg?.

“My fellow Princetonian, Ben,”
Said Krugman, “A man of great ken,
Said to signal, in crisis,
Inflation of prices,
Would get people spending again.”

“But his Fed, in my own objectivity,
Has shown unexpected passivity
To use every tool
That he spoke of in school
To boost economic activity.”

“To fight unemployment so brutal,
One should use the whole kit and caboodle,
But the Fed, in its thrall,
Assimilates all,
Against which, resistance is futile.”

In a scathing critique entitled “Earth to Ben Bernanke”, New York Times columnist and Princeton professor Paul Krugman took the Fed chairman to task for seemingly forsaking the advice that he gave to Japan’s central bankers twelve years ago. Then-Professor Bernanke lectured the Japanese on their “Self-Induced Paralysis”; were they to face the “liquidity trap” of a stagnating economy and zero interest rates with sufficient boldness, wrote Bernanke, the Bank of Japan would signal a higher inflation target of, say, 4%. This would likely induce folks to take their yen out of their futons and spend them. A similar lesson would apply to today’s Fed, says Krugman, but Chairman Bernanke has not followed the advice of Professor Bernanke. Has Bernanke been cowed by anti-inflation political bullying, he asks, or “assimilated by the Fed Borg and turned into a conventional central banker?”