Education and Labor market outcomes of Teen Mothers and Teen Fathers: Evidence from Cebu, the Philippines

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Early childbearing/fatherhood has important implications for the educational and adult labor market outcomes. Teenage childbearing/fatherhood leads to human capital deficits which may adversely affect labor outcomes. While many studies have been conducted for developed countries, only little empirical evidence exists in the context of developing countries. Moreover, while many studies demonstrate that childbearing is associated with a decrease in the education attainment of teenagers, the results with respect to labor outcomes are ambiguous. In this study, we attempt to establish a causal relationship between the timing of first birth and the education and labor market outcomes of a sample of Filipino youth using the Cebu Longitudinal Health and Nutrition Survey. This is a survey of a cohort born in 1983-84 who have been followed through young adulthood till 2009. We categorize the parental status of young women/men aged 25-26 years into two: teen parents and not teen parents, based on the age at first birth. To account for the potential endogeneity of fertility timing, we employ an instrumental variable, specifically, a Control Function approach, which gives consistent estimates in a non-linear framework. We instrument for the timing of first birth using indicators for the onset of puberty and the community level availability of supplies of contraception such as distance to family planning centers at adolescence. We examine the effect of being a teen mother/father on the grade attainment and labor market participation. Our results suggest that, on average, teenage childbearing decreases the education attainment and increases the probability of working relative to not teen parents. To understand how fertility timing affects the quality of jobs, we use a multinomial logit model where we classify employment status into three categories: formal employment, informal employment, and nonparticipation. Teen parents are more likely to select into informal jobs relative to non-teen parents. Some suggested mechanisms include lower human capital accumulation and tradeoffs between demands for childcare and time allocation for formal jobs. One of the most interesting findings is that, overall, teen mothers are likely to be better educated and but are less likely to participate in the labor market than teen fathers. These findings have significant policy implications for the Philippines where access to contraception is limited. It is imperative to facilitate higher educational attainment by providing better access to contraception for delaying childbirth. Policies aimed at providing support for childcare also may enable young parents to cater to the demands of a formal job and reduce the likelihood of lower quality informal jobs.

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Dec 5th, 12:00 AM

Education and Labor market outcomes of Teen Mothers and Teen Fathers: Evidence from Cebu, the Philippines

Early childbearing/fatherhood has important implications for the educational and adult labor market outcomes. Teenage childbearing/fatherhood leads to human capital deficits which may adversely affect labor outcomes. While many studies have been conducted for developed countries, only little empirical evidence exists in the context of developing countries. Moreover, while many studies demonstrate that childbearing is associated with a decrease in the education attainment of teenagers, the results with respect to labor outcomes are ambiguous. In this study, we attempt to establish a causal relationship between the timing of first birth and the education and labor market outcomes of a sample of Filipino youth using the Cebu Longitudinal Health and Nutrition Survey. This is a survey of a cohort born in 1983-84 who have been followed through young adulthood till 2009. We categorize the parental status of young women/men aged 25-26 years into two: teen parents and not teen parents, based on the age at first birth. To account for the potential endogeneity of fertility timing, we employ an instrumental variable, specifically, a Control Function approach, which gives consistent estimates in a non-linear framework. We instrument for the timing of first birth using indicators for the onset of puberty and the community level availability of supplies of contraception such as distance to family planning centers at adolescence. We examine the effect of being a teen mother/father on the grade attainment and labor market participation. Our results suggest that, on average, teenage childbearing decreases the education attainment and increases the probability of working relative to not teen parents. To understand how fertility timing affects the quality of jobs, we use a multinomial logit model where we classify employment status into three categories: formal employment, informal employment, and nonparticipation. Teen parents are more likely to select into informal jobs relative to non-teen parents. Some suggested mechanisms include lower human capital accumulation and tradeoffs between demands for childcare and time allocation for formal jobs. One of the most interesting findings is that, overall, teen mothers are likely to be better educated and but are less likely to participate in the labor market than teen fathers. These findings have significant policy implications for the Philippines where access to contraception is limited. It is imperative to facilitate higher educational attainment by providing better access to contraception for delaying childbirth. Policies aimed at providing support for childcare also may enable young parents to cater to the demands of a formal job and reduce the likelihood of lower quality informal jobs.