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This paper analyses the impact of economic resources on the likelihood of out-of-wedlock childbearing and the consequent family formation behaviour after such an event. The analysis is undertaken by specifying a multi-state, multi-spell duration model, with dynamic interactions. The results suggest that the economic resources which young women face are indeed important, not only as determinants of premarital childbearing, but also for how out-of-wedlock childbearing is resolved. Simulations indicates that welfare generosity and family resources are the most important determinants, whereas personal earnings potential plays a less important role. (AUTHORS)

Economic resources and single motherhood: incidence and resolution of premarital childbearing among young American women