Cost of Unwed Teen Birth in N.C. Measured

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Cost of Unwed Teen Birth in N.C. Measured

Special Report - November 2, 2006
In addition to the negative consequences for society, teenage childbearing has tangible economic costs as well, according to a new report from the National Campaign to Prevent Teen Pregnancy. The November 2006 report, “By the Numbers: The Public Costs of Teen Childbearing,” shows that teen childbearing in North Carolina cost taxpayers at least $312 million in federal, state and local taxes in 2004. The report examines the economic costs of teen childbearing in the United States by specifically measuring the “participation of the children of teen mothers in the public health care systems, such as Medicaid and SCHIP, the child welfare system (foster care and child protective services) and the criminal justice system.” According to the report, the annual costs to taxpayers from the children born to teen mothers in North Carolina includes: $54 million for public health care, $36 million for child welfare services, $61 million for incarceration (of the children of teen mothers) and $105 million in lost tax revenue from a decrease in earnings and spending. These expenses and separate costs associated with the teenage parent account for the $312 million price tag to taxpayers. On average, the annual taxpayer cost of teen childbearing in North Carolina is $1,503 per teen birth, with the costs even greater among younger teens (age 17 or younger).

Most of the costs measured in the report are related to the negative life outcomes for the children of teen mothers. The report points out that compared to women who delay childbearing until their early twenties, teen mothers are more likely to drop out of school, remain unmarried, and be poor, and their children are more likely to be raised by single parents, suffer from neglect and abuse, and enter the child welfare system at some point. In addition, the daughters of teen mothers are more likely to become teen mothers and the sons of teen mothers are more likely to go to prison. Nationally, the annual cost of teen childbearing for taxpayers is at least $9.1 billion.

Stephen Daniels, director of research for the North Carolina Family Policy Council reacting to these findings, said, “The high risk of poverty and abuse for teen mothers and their children, along with the economic burden on the taxpayer further emphasize the importance of abstinence-until-marriage education in North Carolina’s schools. These costs, and other risks such as sexually transmitted disease and emotional harm, demonstrate that young people deserve a clear message affirming marriage as the proper place for sexual activity.”

The teen birth rate (the number of births per 1,000 teenage girls ages 15-19) in North Carolina declined 30 percent between 1991 and 2004, saving taxpayers an estimated $219 million in 2004, according to the report. Nationwide, the teen birth rate dropped 33 percent between 1991 and 2004, the same time period that abstinence-education prevention efforts began in schools nationwide, including North Carolina. In addition to the teen birth rate, the teen pregnancy rate (number of teen pregnancies per 1,000 girls ages 15-19) declined nationally by 36 percent between 1990 and 2002. The report emphasizes the importance of states continuing to work toward reducing the teen pregnancy and birth rate, noting that this “will not only improve the well-being of children, families and communities, but will also reduce the burden on taxpayers...”

To download the North Carolina data, click here.