The Economics of Nonmarital Childbearing and the Marriage Premium for Children

Posted: 14 Aug 2017

See all articles by Melissa S. Kearney

Melissa S. Kearney

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER)

Phillip B. Levine

Wellesley College; National Bureau of Economic Research (NBER)

Date Written: August 2017

Abstract

A large body of literature exists on the impact of family structure on children's outcomes, typically focusing on average effects. In this review, we build on this with an economic framework that has heterogeneous predictions regarding the potential benefit for children of married parents. We propose that the gains due to marriage from a child's perspective depend on a mother's own level of resources, the additional net resources that her partner brings, and the outcome-specific returns to resources. Data from the Panel Study of Income Dynamics are consistent with the heterogeneous predictions of this framework. In terms of high school completion or avoiding poverty at age 25, the so-called marriage premium for children is highest for children of mothers with high school degrees and mothers in their early to mid-20s. For the more advanced outcomes of college completion or high income at age 25, the marriage premium monotonically increases with observed maternal age and education.

Suggested Citation

Kearney, Melissa S. and Levine, Phillip B., The Economics of Nonmarital Childbearing and the Marriage Premium for Children (August 2017). Annual Review of Economics, Vol. 9, pp. 327-352, 2017. Available at SSRN: https://ssrn.com/abstract=3017735 or http://dx.doi.org/10.1146/annurev-economics-063016-103749

Melissa S. Kearney (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Phillip B. Levine

Wellesley College ( email )

106 Central Street
Wellesley, MA 02181
United States
781-283-2162 (Phone)
781-283-2177 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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