Family planning under financial constraints

Abstract

Abstract International evidence shows that contraceptive behavior depends, among other things, on socio-economic factors such as income and education. The aim of this paper is to analyze the relationship between low-income status and contraceptive behavior in Germany in more detail. As an indicator of low income we use the receipt of a means-tested benefit called “Unemployment Benefit II” (UB II). We assume that the transition into this benefit program is related to a change in women's contraceptive choices, in favor of using unpaid methods or no contraceptives at all. Using data from the German Family Panel pairfam, we focused on the use of any contraceptive method which involves costs to the user, as opposed to the use of methods which do not incur monetary costs (e.g., natural contraception) or the disuse of any contraceptives. Our bivariate logistic model on the pooled dataset shows that women receiving UB II without the intent to have children in the next two years are less likely to use paid contraceptives than non-recipients. However, this appears to be a spurious correlation, as the longitudinal hybrid model shows no relation between intrapersonal changes regarding UB II and the use of contraceptives subject to cost. This model also provides evidence that women with a migration background and lower education are less likely to use paid contraceptives.