Foreign Aid and Teenage Childbearing

Abstract Teenage childbearing has serious consequences for young mothers, their children, and society. This study estimates the impact of foreign aid projects on teenage fertility in Malawi. We combine georeferenced data on aid projects from 1998 to 2016 with individual‐level fertility data. Identification relies on spatial and temporal variation in aid exposure and survey timing, with controls for project placement and teenage childbearing among older women not exposed to the intervention. Results show that aid to sexual and reproductive health, HIV/AIDS, and education significantly reduce teenage fertility, while other aid types have limited effects. Women exposed to relevant aid during the critical age range were 11 percent less likely to have given birth as teenagers, with larger effects for women who were exposed for longer periods. The effect appears to operate mainly through increased school attendance and delayed marriage, but there is also some evidence for increased abstinence, contraceptive use, and family planning knowledge.