Abortion as Insurance

This paper views abortion access as an insurance policy that protects women from unwanted pregnancies. Within this framework, we present a theoretical model where greater access provides value in the form of insurance against unwanted births and also reduces the incentive to avoid pregnancy. This model predicts that legalized abortion should lead to a reduction in the likelihood of giving birth. It also predicts that if abortion access becomes relatively inexpensive (including both monetary and psychic costs), then pregnancies would rise and births would remain unchanged or may even rise as well. We review the evidence on the impact of changes in abortion policy mainly from the United States and find support for both predictions. Then we test these hypotheses using recent changes in abortion policy in several Eastern European countries. We find that countries which changed from very restrictive to liberal abortion laws experienced a large reduction in births, highlighting the insurance value. Changes from modest restrictions to abortion available upon request, however, led to no such change in births despite large increases in abortions, indicating that pregnancies rose as well. These findings are consistent with the incentive effect implications of our model.

Abortion Legalization and Child Living Circumstances: Who is the "Marginal Child?"

We estimate the impact of changes in abortion access in the early 1970s on the average living standards of cohorts born in those years. In particular, we address the selection inherent in the abortion decision: is the marginal child who is not born when abortion access increases more or less disadvantaged than the average child? Legalization of abortion in five states around 1970, followed by legalization nationwide due to the 1973 Roe v. Wade decision, generates natural variation which can be used to estimate the effect of abortion access. We find that cohorts born after abortion was legalized experienced a significant reduction in a number of adverse outcomes. Our estimates imply that the marginal child who was not born due to legalization would have been 70% more likely to live in a single parent family, 40% more likely to live in poverty, 50% more likely to receive welfare, and 35% more likely to die as an infant. These selection effects imply that the legalization of abortion saved the government over $14 billion in welfare expenditures through 1994.

Abortion and Selection

The introduction of legalized abortion in the early 1970s led to dramatic changes in fertility behavior. Some research has suggested as well that there were important impacts on cohort outcomes, but this literature has been limited and controversial. In this paper, we provide a framework for understanding the mechanisms through which abortion access affects cohort outcomes, and use that framework to both address inconsistent past methodological approaches, and provide evidence on the long-run impact on cohort characteristics. Our results provide convincing evidence that abortion legalization altered young adult outcomes through selection. In particular, we find evidence that lower costs of abortion led to improved outcomes in the birth cohort in the form of an increased likelihood of college graduation, lower rates of welfare use, and lower odds of being a single parent. We also find that our empirical innovations do not substantially alter earlier results regarding the relationship between abortion and crime, although most of that relationship appears to reflect cohort size effects rather than selection.

Abortion Policy and Fertility Outcomes: The Eastern European Experience

Theory suggests that abortion restrictions will influence fertility outcomes such as pregnancy, abortion, and birth. This paper exploits the variations in abortion policy generated in Eastern Europe in the late 1980s and early 1990s to examine their impact on fertility outcomes. We distinguish among countries with severe, moderate, and few restrictions on abortion access and examine the impact of changes across all three categories. As we hypothesize, the results indicate that countries that changed from very restrictive to liberal abortion laws experienced a large reduction in births. Changes from modest restrictions to abortion available on request, however, led to no such change in births despite large increases in abortions, which indicates that pregnancies rose in response to more liberal abortion availability. This evidence is generally consistent with the situation that was brought about by changes in abortion access in the United States

Roe v. Wade and American Fertility

We consider the effect of abortion legalization on births in the United States. A simple theoretical model demonstrates that the impact of abortion legalization on the birth rate is ambiguous, because both pregnancy and abortion decisions could be affected. We use variation in the timing of legalization across states in the early 1970's to estimate the effect of abortion on birth rates. Our findings indicate that states legalizing abortion experienced a 5% decline in births relative to other states. The decline among teens, women over 35, and nonwhite women was even greater: 13%, 8%, and 12% respectively. Out-of-wedlock births declined by twice as much as births in wedlock. If legalization in some states affected birth rates in neighboring states (through travel to obtain an abortion), comparing births between states will underestimate the actual reduction. Using more distant comparison states increases the estimated impact of abortion legalization on birth rates to about 8%. Applying this estimate to the current level of births, a complete recriminalization of abortion would result in 320,000 additional births per year.

Abortion Legalization and Child Living Circumstances: Who is the \u27Marginal Child\u27?

We estimate the impact of changes in abortion access in the early 1970s on the average living standards of cohorts born in those years. In particular, we address the selection inherent in the abortion decision: is the marginal child who is not born when abortion access increases more or less disadvantaged than the average child? Legalization of abortion in five states around 1970, followed by legalization nationwide due to the 1973 Roe v. Wade decision, generates natural variation which can be used to estimate the effect of abortion access. We find that cohorts born after abortion was legalized experienced a significant reduction in a number of adverse outcomes. Our estimates imply that the marginal child who was not born due to legalization would have been 70% more likely to live in a single parent family, 40% more likely to live in poverty, 50% more likely to receive welfare, and 35% more likely to die as an infant. These selection effects imply that the legalization of abortion saved the government over $14 billion in welfare expenditures through 1994