Teenage Pregnancy: Incentives to avoid being knocked up
March 11th, 2008From the Rt Hon Balneus comes an interesting proposition to reduce teenage pregnancies: simply offer a cash incentive for not getting pregnant.
This came about from a post about population reduction being the answer to reducing carbon emissions. As i noted in my previous post population growth, especially in developing countries, is putting severe pressure on all resources.
China has been on to this well in advance with its one child per couple policy. For developed countries teenage pregnancies have been a bit of a problem and something that has not been adequately addressed. This idea fits in neatly with the premise of the “Logic of Life” by Tim Harford.
Tim notes that people make complicated calculations about potential trade offs every day whether its to have unprotected sex or park illegally. He argues cogently that we do respond to incentives and change behaviour when the pay offs look in our favour.
For example he notes research which showed juvenile crime lower or falling in US states where the age for adult criminality was lower than in states where it was higher. The reason was simple: the payoffs were worse for juvenile criminals in states where they would be tried in the adult system. Juveniles were simply responding to the market.
So for teenage pregnancies it is a similar story. Where welfare benefits are good for both mother and baby, there is no disincentive to get pregnant. So the payoffs for riskier behaviour are ok. That’s because as a society we value the rights of the baby and choose to provide for it regardless of how it arrived.
Now imagine we said to all teenage girls that for every year until a certain age (whether 18 or 21) they would receive $200 in a savings account for not getting pregnant. That would be an interesting idea to model.
Now I am sure there are many pros and cons to this but I like the idea of policymaking taking into account how people behave rather than what officials deem to be a good or right thing to do.
Tags: birth control, economics, game theory, incentives, parenting, policy ideas, population
March 11th, 2008 at 2:32 am
Actually, on reflection, I’ll clarify my thoughts. I’d say the cash bonus should be for not being viviparous that year, implying that using drugs like RU486, or even stillbirths should not preclude the bonus. Besides, testing for pregnancy is costly – detecting a live birth is easy.
I’d also disregard the age limit (let’s make it average menopause age).