AN EMPIRICAL ANALYSIS OF ADOPTION

This paper estimates the supply of adoptions using a decision-making economic framework of desired fertility and family size. The empirical results show that the decision to place a child for adoption is negatively related to a woman's labor force participation, the size of Aid to Families with Dependent Children payments and the unemployment rate, and is positively related to her marital status, education, and religious affiliation. The price and availability of abortions are found to have no statistically significant effect on the adoption decision. Furthermore, state regulations designed to encourage adoptions have no impact on the adoption option.