Abstract
Data from the evaluation of the Youth Incentive Entitlement Pilot Projects are used to test for a negative effect of economic opportunity upon adolescent childbearing among black youths from low-income households. We find that economic opportunity has a significant effect upon fertility, but that the direct effect of fertility upon school dropout is insignificant. The observed connection between fertility and dropout appears to reflect unmeasured factors for adolescent women which drive both variables. Methodological and policy implications of this finding are discussed.
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