The Consequences of Abortion and Contraception Policies on Young Women's Reproductive Choices, Schooling and Labor Supply

Abstract

I specify a dynamic life-cycle model of abortion, contraceptive use, schooling, and labor supply decisions of US women. I structurally estimate the model, allowing for abortion misreporting, using data from the NLSY97, aggregate abortion provider data from the Guttmacher Institute, and information on mandatory counseling restrictions at the state level. I simulate a series of policies and find that eliminating access to abortion services increases contraceptive use but decreases women’s schooling and lifetime earnings. I also find that providing free contraception would increase contraceptive use and decrease abortion rates substantially, while also leading to an increase in women’s schooling.

Keywords: Abortion, Contraception, Fertility, Human Capital, Structural Estimation

JEL Classification: J13, J16, J20