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In this study I contrast hypotheses about the effects of family structure on premarital birth risks with three income hypotheses: (1) a low income hypothesis--that the risk of a premarital birth is higher for women from disadvantaged economic backgrounds because they possess fewer or less attractive economic opportunities; (2) a permanent income and transitory income hypothesis--that uncertainties generated by unexpected fluctuations in family income increase premarital birth risks net of absolute income levels; and (3) an income level and income change hypothesis--that downward trends in family income reflect worsening socioeconomic opportunities that increase premarital birth risks net of absolute income levels. I use prospective income and retrospective parental histories in the U.S. National Longitudinal Survey of Youth to determine if the effect of family instability...is an artifact of low unstable or declining income in the family of origin. (EXCERPT)
Lawrence Wu (Sat,) studied this question.