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    Did Legalized Abortion Lower Crime?Author(s): Ted JoyceSource: The Journal of Human Resources, Vol. 39, No. 1 (Winter, 2004), pp. 1-28Published by: University of Wisconsin PressStable URL: http://www.jstor.org/stable/3559003

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    Did Legalized Abortion

    Lower

    Crime?

    Ted

    Joyce

    ABSTRACT

    In

    this

    paper

    I

    compare changes

    in

    homicide

    and arrest

    rates

    among

    co-

    horts

    born

    before

    and

    after

    the

    legalization of

    abortion to

    changes

    in

    crime

    in

    the same

    years

    among

    similar

    cohorts

    who were

    unexposed

    to

    le-

    galized

    abortion. I

    find

    little consistent

    evidence

    that the

    legalization of

    abortion

    in

    selected states around

    1970,

    and

    then

    in

    the

    remaining

    states

    following

    Roe

    v.

    Wade,

    had an

    effect

    on

    recent

    crime

    rates.

    I

    conclude

    that

    the

    dramatic association as

    reported

    in

    a

    recent

    study

    is most

    likely

    the result

    of

    unmeasured

    period effects

    such

    as

    changes

    in crack

    cocaine use.

    I. Introduction

    In a recentandcontroversial

    rticle,

    Donohue

    and Levitt

    (2001)

    pre-

    sent

    evidence hat

    he

    legalization

    of

    abortionn

    1973

    explains

    over half

    of

    the recent

    decline n crimeacross

    he

    UnitedStates.

    A

    50

    percent

    ncrease

    n

    the mean

    abortion

    ratio s

    associated

    with

    an 11

    percent

    decrease n violent

    crime,

    an 8

    percent

    decrease

    in

    property

    rime and

    a

    12

    percent

    decrease n murder.These effects are

    generally

    largerandmorepreciselyestimated han he effectsof incarcerationndpoliceman-

    power.

    Moreover,

    hey

    conclude that

    the

    full

    impact

    on crime

    of

    Roe

    v.

    Wadewill

    not

    be felt for

    another

    20

    years.

    To

    quote,

    "Ourresults

    suggest

    that all

    else

    equal,

    Ted

    Joyce

    is

    a

    professor

    of

    economicsat Baruch

    College

    and a

    researcher

    with the National Bureau

    of

    EconomicResearch.

    Thisworkwas

    supported

    by

    a

    grant rom

    the

    Open

    Society

    Institute.John

    Donohue

    III

    and Steven

    Levitt

    graciously

    shared

    their

    data and

    programs,

    which

    greatly acilitated

    the

    author's

    analysis. They

    also

    providedhelpful

    comments n

    earlier

    drafts.

    The

    author

    also

    thanks

    Greg

    Colman

    or

    researchassistanceand

    Robert

    Kaestner,

    Michael

    Grossman,

    Sanders

    Korenman,

    Philip

    Cook,

    Phillip

    Levine,

    John

    Lott,

    and numerous eminar

    participants

    or helpful

    comments.He states

    that the views and errors

    in

    this

    manuscript

    re

    his

    and not

    those

    of

    the

    Open Society

    Institute,

    Baruch

    College,or the NationalBureauof EconomicResearch.The data usedin this article can be obtained

    beginningAugust

    2004

    throughJuly 2007from

    Dr.

    Ted

    Joyce,

    NationalBureau

    of

    EconomicRe-

    search,

    365

    Fifth

    Avenue,

    th

    Floor,

    New

    York,

    NY

    10016-4309.

    [Submitted

    May

    2002;

    acceptedJuly

    2002]

    ISSN

    022-166X

    ?

    2004

    by

    the

    Boardof

    Regents

    of

    the

    University

    of

    Wisconsin

    System

    THE

    JOURNAL OF

    HUMAN

    RESOURCES

    *

    XXXIX

    *

    1

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    2 The

    Journal

    of

    HumanResources

    legalized

    abortion

    will

    account

    or

    persistent

    declines of

    1

    percent

    a

    year

    in

    crime

    over

    the next two

    decades"

    p.

    415).

    Given the social costs associated

    with crime

    and the controversy surrounding bortion,a causal link between abortion and

    crime

    has

    profound

    mplications

    or social

    policy.

    The

    purpose

    of this

    paper

    s to

    analyze

    he associationbetween

    egal

    abortion nd

    crime.

    The

    primary

    differencebetween

    my analysis

    of abortionand

    crime

    and that

    of

    Donohue and

    Levitt is the identification

    trategy.

    Donohue and

    Levitt

    regress

    crime

    ratesbetween 1985 and 1996

    on abortion atios

    agged

    15

    to 25

    yearsadjusted

    for

    state

    and

    year

    fixed effects.

    However,

    the

    study period

    coincides

    with

    the rise

    and

    decline

    of the

    crack

    cocaine

    epidemic,

    which

    many

    observers

    ink to the

    spread

    of

    guns

    and the

    unprecedented

    ncrease

    n

    youth

    violence

    (Cook

    and

    Laub

    1998;

    Blumstein

    1995; Blumstein,Rivara,

    and Rosenfeld

    2000).

    Moreover,

    datafrom

    po-

    lice surveys,emergency ooms,and fromurinesamplesof arresteesn majormetro-

    politan

    areas

    suggests

    that the

    timing

    of the

    arrival,

    diffusion,

    and decline

    in

    crack

    use

    varied

    significantly

    by city

    (Golub

    and Johnson

    1997;

    Cork

    1999;

    Grogger

    and

    Willis

    2000).

    Thus,

    even

    in models with stateand

    year

    fixed

    effects,

    the

    relationship

    between abortion

    and crime

    may

    be

    biased

    by

    differences

    n

    within-state

    rowth

    n

    cocaine

    marketsover

    time,

    a classic

    problem

    of omitted

    variables.

    A

    crudesolution

    is

    to include

    controlsfor

    state-specific

    inear or

    quadratic

    rends.

    However,

    this is

    not

    possible

    in

    the

    contextof Donohueand Levitt's

    model,

    becausethe

    trend erms

    remove

    all variation n the abortion atio.

    I take

    a different

    approach

    o the

    identification

    f an

    abortion-crime

    exus. I use

    the

    early legalization

    of abortion n selected states

    prior

    to Roe v. Wadeand then

    national

    egalization

    afterRoe

    in

    the

    remaining

    tates

    to

    identify

    exogenous

    shifts

    in

    unintended

    hildbearing. pecifically,

    estimate

    a

    reduced-form

    quation

    n which

    changes

    in arrest

    and

    homicide rates

    among

    cohorts before and after

    exposure

    o

    legalized

    abortion re

    compared

    o

    changesamong

    cohorts hatare

    unexposed.1

    his

    is similar

    to Donohue

    and Levitt's fixed effect

    specification,

    since

    identification

    comes

    from

    changes

    n

    crimeand abortion cross

    states.

    However,

    I show that hese

    estimates

    are sensitiveto the

    years

    thatare

    analyzed,

    which I

    interpret

    s an omitted

    variable

    problem

    relatedto

    unobserved,

    tate-specificperiod

    effects.

    I then use a

    difference-in-differencestimatorbased

    on

    a within-state omparison roup

    o net

    out

    changes

    n

    crime

    associated

    with

    hard-to-measureactors

    hat

    vary

    by

    state and

    year,

    such

    as

    the

    spread

    of crackcocaine and its

    spillover

    effects.

    In

    these

    analyses

    I

    find no

    effect

    of abortion

    egalization

    on crime

    regardless

    of

    the

    years

    analyzed.

    The difference-in-difference

    trategy

    has two other

    advantages

    n

    an

    analysis

    of

    abortion

    nd

    crime.

    First,

    Donohueand Levittuse the ratioof abortions

    o

    birthsas

    an inverse

    proxy

    for unwantedbirths.

    However,

    abortion s

    endogenous

    o sexual

    activity,

    contraception

    nd

    childbearing.

    A rise in abortion

    may

    have

    relatively

    ittle

    effect on

    unwanted

    childbearing.

    t is

    noteworthy,

    hat the abortion ate

    rose from

    16.3 abortions

    per

    1,000

    women

    ages

    15

    to 44 in

    1973

    to

    29.3

    in

    1980,

    an increase

    of 79 percent.Overthesameperiod,however, he number f birthsper1,000women

    1.

    See Levine

    et al.

    (1999),

    Gruber,

    Levine,

    and

    Staiger

    1999),

    Angrist

    and Evans

    (1999)

    for a

    similar

    approach pplied

    o

    fertility,

    child

    well-being,

    and teen

    pregnancy, espectively.

    A recent

    manuscript

    y

    Lott and

    Whitley

    (2001)

    also

    focuses on a

    comparison

    f cohorts

    exposed

    and

    unexposed

    o

    legalized

    abortion.

    They report

    a

    positive

    but

    relatively

    small

    associationbetween

    legalized

    abortionand murder

    rates.

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    Joyce

    3

    ages

    15

    to

    44

    was

    essentially unchanged,

    rom

    69.2

    to 68.4.

    By

    contrast,

    here

    is

    substantial

    vidence

    thatthe

    early

    egalization

    of abortion

    n

    selected states

    nduced

    a significantdecline in fertilitybetween 1971 and 1973 (Sklarand Berkov 1974;

    Joyce

    and Mocan

    1990;

    Levine et al.

    1999;

    Angrist

    and Evans

    1999).

    This

    change

    in

    fertility

    s a more

    plausible

    source

    of

    exogenous

    variationwith

    which to

    identify

    a decline

    in

    unwanted

    births

    than

    within-state

    hanges

    in

    reported egal

    abortions

    between

    1973 and

    1985.

    The

    other

    advantage

    of the

    difference-in-difference

    pproach

    s that

    it

    obviates

    the need

    to

    measure

    llegal

    or

    unreported

    bortion

    n

    the

    years

    before

    legalization.

    Donohueand Levitt use

    no data

    on

    abortion

    prior

    o 1973. Their

    analysis

    of

    arrests

    by single

    year

    of

    age,

    for

    instance,

    pertains

    o

    birthcohortsborn

    between 1961 and

    1981

    where

    approximately

    0

    percent

    of the

    state/age/cohort

    cells

    are

    assigned

    an

    abortion atioof zero.However,demographersaveconcluded hatmostlegalabor-

    tions in

    the

    early

    1970s

    replaced llegal

    abortions

    Tietze

    1973;

    Sklarand Berkov

    1974).

    If

    the

    underreporting

    f

    abortion

    were

    random

    among

    states,

    theirestimates

    would be biased

    downward.As

    I

    show

    below,

    however,

    the

    measurement rror

    s

    negatively

    correlated

    with

    the true abortion ate

    in

    1972

    and thus the directionof

    the bias

    is

    unknown.

    II.

    Conceptual

    and

    Empirical

    Issues

    A.

    Abortionand

    Unintended

    Childbearing

    As

    outlined

    by

    Donohue

    and

    Levitt,

    thereare

    several

    ways

    in

    which

    legal

    abortion

    can

    affectcrime.Cohort

    ize is one. Fewerbirthsmean

    ewercriminals n

    subsequent

    years.

    Second,

    egal

    abortion

    may

    also

    affect crimerates

    hrough

    a relative

    decrease

    in

    fertility

    ates

    among

    poor,

    young,

    and

    minority

    women.Since children

    rom

    disad-

    vantaged

    backgrounds

    re

    more

    ikely

    to

    commit

    crimesas

    teens

    or

    adults,

    he

    result

    of a selective reduction

    n

    childbearing

    s a

    drop

    in crime

    rates

    approximately

    5

    to 25

    years

    later.

    Third,

    even if the decline in

    fertility

    rates caused

    by legalized

    abortion

    were

    distributed

    qually

    among

    all

    women,

    a

    fall

    in

    unintended

    hildbearing

    could

    bring

    abouta fall in crime if thosebornfromunintended

    pregnancies

    were

    more

    likely

    to

    commit

    crime than ndividuals rom

    pregnancies

    hat

    were

    intended.

    DonohueandLevitt's

    dentification

    trategy

    s to correlate rime

    ratesand

    arrests

    to

    lagged

    abortion

    atios

    adjusted

    or

    state

    and

    year

    fixed

    effects.

    Abortionratios

    serve as

    an

    inverse

    proxy

    for unwanted

    hildbearing.

    n their

    analysis

    of arrests

    of

    youths

    15

    to 24

    years

    of

    age,

    they

    regress

    arrests

    by single

    year

    of

    age

    on the

    abortion

    ratio

    in the

    year

    before a cohortwas born.

    Thus,

    arrests

    of

    18-year-olds

    n

    1988

    in

    state are

    correlatedwith

    the

    abortion

    atio

    in

    state

    in

    1969

    (t-18-1).

    B. Periodand CohortEffects

    The

    biggest

    challenge

    o

    identifying

    a

    cohort

    effect associatedwith

    egalized

    abortion

    is the

    potential

    confounding

    rom

    strongperiod

    effects such as the

    spread

    of

    crack

    cocaine.

    Therewas an

    unprecedented

    ise

    in

    youth

    homicide

    between

    1985 and

    1993.

    The

    rise

    among

    blacks

    greatly

    exceeded

    that of whites and almost all

    the

    growth

    n

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    4

    The Journal

    of HumanResources

    homicide

    nvolved

    handguns

    Blumstein

    1995; 2000;

    Cook and

    Laub

    1998).

    Crimi-

    nologists

    have

    largely

    attributedhe

    growth

    n

    youth

    homicide

    o the violent

    develop-

    mentof crackcocainemarketsn poorurban enters Blumstein,Rivara,andRosen-

    feld

    2000).

    The lack

    of consistentdata on the extent of cocaine

    use or the

    spread

    of

    illegal

    handguns,

    however,

    has limited

    empirical

    work.

    Despite

    the lack of

    data,

    several

    sources

    suggest

    that the

    introduction f crack

    occurred

    n

    the

    mid-to-late

    1980s

    (Cork

    1999;

    Grogger

    and Willis

    2000;

    Caulkins

    2001).

    Grogger

    and Willis

    (2000)

    surveyed

    police

    departments

    n

    27

    metropolitan

    areas as

    to the

    year

    in

    which crack was first noted and

    compared

    responses

    rom

    the

    survey

    with

    changes

    n

    indications

    of

    drug

    use from

    emergency

    room ncidents

    as collected

    by

    the

    Drug

    Abuse

    Warning

    Network

    (DAWN).

    Arrivaldates tended

    to

    be earliest

    n

    East and West Coast cities

    and

    later

    for cites in

    the

    Midwest.Cork

    (1999) used dataon drugarrestsandgun homicides to associatechanges n crack

    market

    activity

    and

    youth

    murder

    ates. He also

    found

    that clusters

    of

    drug

    arrests

    began

    first

    in the West and Northeastbefore

    moving

    inland.

    The

    peak

    in crackuse and ts declinefollowed

    a

    similar

    pattern.

    Analyses

    of

    urine

    among

    arrestees

    rom

    the

    Drug

    Use

    Forecasting

    DUF)

    program

    uggest

    thatcrack

    use

    began

    to fall around

    1989

    in

    New

    York,

    Philadelphia,

    nd

    Los

    Angeles

    but later

    andmore

    slowly

    in

    Cleveland,

    Chicago,

    and

    Indianapolis

    Golub

    andJohnson

    1997).

    For

    example,

    the

    proportion

    f arrestees hat tested

    positive

    for crack/cocaine

    n

    1989

    exceeded

    70

    percent

    n New Yorkand

    Philadelphia,

    0

    percent

    n

    Washington

    D.C. and 56

    percent

    n

    Los

    Angeles.

    In

    Cleveland,

    Chicago,

    Dallas, Denver,

    Hous-

    ton,

    Indianapolis,

    Kansas

    City,

    San

    Antonio,

    andSt.

    Louis,

    the

    prevalence

    f crack/

    cocaine

    among

    arrestees

    anged

    rom

    approximately

    0 to 55

    percent

    n

    1989

    and

    in

    several cities

    actually

    rose in the

    early

    1990s.

    Several

    points

    from this discussionare relevant.

    First,

    data on

    crackuse

    by

    state

    and

    year

    are

    too

    incomplete

    o

    apply empirically.

    Second,

    what

    is known

    suggests

    thatcrack

    markets

    developed

    n different ities at different imes

    and thus

    represent

    a

    state-year

    eriod

    effect that s not

    captured y

    national rends.

    Third,

    he dataalso

    suggest

    that

    New York

    City

    and Los

    Angeles

    were

    early

    sites of crack

    markets.Not

    only

    are these

    the

    largest

    cities

    in

    the

    two

    largest

    states,

    but abortion

    became

    egal

    in both statesroughly hreeyearsbeforeRoe.Thus,DonohueandLevitt'sevidence

    that

    crime fell

    earlierand faster

    in

    the

    early legalizing

    states

    may

    be

    spurious,

    a

    resultof the

    differential

    iming

    in the evolution of crackmarkets.

    The

    potential

    confounding

    rom

    time-varyingperiod

    effects

    is

    illustrated

    y

    the

    time-seriesof

    age-

    and

    race-specific

    homiciderates.

    Figure

    a shows

    homiciderates

    for

    white

    teens

    (ages

    15 to

    19)

    and

    young

    adults

    ages

    20

    to

    24)

    in

    repeal

    and

    nonre-

    peal

    states

    rom 1985

    to

    1997;

    Figure

    b

    presents

    he

    corresponding

    eries

    or blacks.

    Repeal

    states

    arethose that

    egalized

    abortion etween

    1969

    and

    1970:

    Alaska,

    Cali-

    fornia,

    Hawaii,

    New

    York,

    and

    Washington.

    also include

    Washington

    D.C.

    among

    the

    early egalizers.2

    Abortionbecame

    egal

    in

    the

    nonrepeal

    tates

    n

    1973

    with

    the

    SupremeCourtdecisionin Roe v. Wade.

    2.

    Washington

    D.C. has

    not

    been treated

    as an

    "early

    egalizer"

    n

    previous

    analyses.

    However,

    he

    1969

    decision n United

    Statesv. Vuitch endered

    he District'sabortionaw unconstitutional.

    s a

    result,

    writes

    Lader,

    "Washington's

    bortion acilitiessoonranked

    mong

    he busiest n the

    country,

    with

    20,000

    patients

    in

    1971"

    (Lader

    1974,

    p.

    115).

    Data on abortion

    n

    1971

    from the

    Center

    or Disease Control

    1972)

    support

    Lader'sobservation.

    The residentabortion

    atio

    (abortions

    er

    1,000

    live

    births)

    n D.C. in

    1971

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    5

    Two

    points

    are

    noteworthy.

    First,

    homicide rates

    rise

    earlier

    n

    repeal

    than in

    nonrepeal

    tatesconsistentwith

    the

    earlierarrival

    f

    crack

    n

    New York

    and

    Califor-

    nia.Second, hecurvilinearrendnhomiciderates s similaramong eens andyoung

    adults within

    repeal

    and

    nonrepeal

    tates and is

    inconsistent

    with

    a

    strong

    cohort

    affect associatedwith

    legalized

    abortion.Most

    teens

    in

    1985

    were bornbefore 1970

    and

    thus

    were

    unexposed

    o

    legalized

    abortion n utero.

    By

    1990, however,

    eens

    in

    repeal

    stateshad

    been

    bornafter 1970 and were thus

    exposed.

    Put

    differently,

    eens

    in

    repeal

    states

    in

    1990

    represent

    he first

    cohort

    of

    "more wanted"births.

    Thus,

    evidenceof

    a

    cohorteffect associated

    with

    the

    pre-Roe

    egalization

    f abortionwould

    be a relative

    decrease

    n

    teen homiciderates

    n

    repeal

    states

    beginning

    around

    1988,

    followed

    five

    years

    later

    by

    a

    similardecline

    amongyoung

    adults.There s

    no

    evi-

    dence

    of

    such

    a

    pattern mong

    eitherblacks or whites. In

    fact,

    the coincidentmove-

    ment in homicide ratesby teens and young adults s more consistentwith strong

    period

    effects.

    In

    order o

    isolate

    a

    cohorteffect associated

    with

    the

    legalization

    of

    abortion,

    esearchersmust

    adjust

    or

    these dramatic rends

    n

    crime

    within-states.

    C.

    Mismeasurement

    nd

    Endogeneity

    of

    Abortion

    Anotherdrawbacko

    Donohue

    and

    Levitt'

    empirical trategy

    s the

    mismeasurement

    of

    abortion nd ts

    endogeneity

    n

    the

    years

    after

    egalization.

    Demographers

    stimate

    that

    approximately

    wo-thirds

    f all

    legal

    abortions

    eplaced

    llegal

    ones

    in

    the first

    year

    after

    egalization.

    Estimates

    are based on

    the

    change

    in

    births

    between 1970

    and 1971

    compared

    o the numberof

    reported

    bortions n 1971

    (Sklar

    and Berkov

    1974;

    Tietze

    1973).

    As

    noted

    above,

    Donohue

    and Levitt

    have no dataon

    abortion

    for

    cohorts

    born

    before

    1974

    and thus assume

    a zero abortion atio

    for

    more than

    half

    their

    observations.

    A

    facile

    argument

    s to

    assume hat

    any

    error s

    likely

    random

    and

    estimatesare biased downward.But this

    assumption

    s

    decisively

    contradicted

    by

    the

    data. As a

    simple example,

    Kansashad an abortionratio of

    414

    per

    1,000

    live births

    n

    1973. Donohueand

    Levitt

    assume he abortion

    atio n

    Kansas

    s

    zero

    in 1972.

    However,

    datacollected

    by

    the Centers or

    Disease

    Control

    CDC)(Centers

    for

    Disease Control

    1974)

    indicate

    that Kansashad an observedabortionratio of

    369

    per 1,000

    live births

    n

    1972

    Going further,

    estimated

    he

    residentabortion

    rate

    n

    1972

    using

    published

    CDC

    dataand the

    algorithm

    sed

    by

    AGI for

    assigning

    abortions

    by

    state of residence

    n

    1973. The correlation

    between

    residentabortion

    rates

    or

    ratios

    in

    1972

    and

    1973

    is

    0.95.

    In

    other

    words,

    states

    with

    the

    greatest

    abortion

    ratios

    in

    1973

    had the

    greatest

    abortion atios in 1972.

    By

    assuming

    he

    abortion

    atiowas

    zero

    in

    the

    45

    nonrepeal

    tates and

    Washington,

    D.C.,

    Donohue

    and

    Levitt build

    in

    an error hat

    s

    negatively

    correlatedwith the trueabortion ate.

    As

    a

    result,

    the directionof the

    bias

    is unknown.3

    was

    793,

    more han

    double

    hatof

    New

    Yorkor

    California.

    hus,

    include

    Washington,

    .C. in all

    analyses

    as

    a

    repeal

    state.

    However,

    my

    results

    are not sensitiveto its inclusion

    as

    a

    repeal

    state.

    3. To illustrate,LetA72be the observedabortion atio n 1972,a72 he actualabortion atio and

    u72

    the

    error.

    Thus

    A72

    =

    a72

    +

    U72

    Recall

    that

    A72

    =

    0 in

    their

    analysis;

    hus,

    a72

    >

    0 and

    u72

    <

    0 and

    the

    true abortion atioand the

    error

    are

    negatively

    correlated;moreover,

    given

    the

    strongpositive

    correlation

    etween he observedabortion

    ratios

    n

    1972

    and

    1973 noted

    above,

    the correlation etween

    a72

    and

    u72

    is

    undoubtedly

    obust.

    Now

    let

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    TheJournalof Human

    Resources

    The other

    difficulty

    with the abortion atioas a measure

    of unwanted

    hildbearing

    is

    that abortion s

    endogenous

    o sexual

    activity,

    contraception

    nd

    fertility.

    Some

    pregnancieshatwereaborted n the mid- to late 1970smaynothave been conceived

    hadabortion emained

    llegal.

    This weakens he

    linkbetweenabortion ndunwanted

    childbearing.

    n

    addition,

    Donohue and Levitt use

    the abortion

    ratio

    (abortions/

    births)

    and referto

    it as the abortion ate

    (abortions/women).

    This exacerbates he

    endogeneityproblem

    and makes the abortion atio a

    less clear

    proxy

    for unwanted

    births.

    The

    growth

    n AFDC and Medicaid

    n

    the

    1970s,

    for

    instance,

    changed

    he

    price

    of

    a

    birth or

    manypoor

    women.

    Thus,

    the abortion

    atio

    may vary

    for reasons

    unrelated o unwanted

    hildbearing.

    D. Selectedreplicationof Donohue and Levitt's indings

    To illustrate

    ome of

    the difficultieswith Donohueand

    Levitt's identification trat-

    egy,

    I have

    replicated

    heir

    key findings

    and

    presented

    hem

    n

    Table 1. Their

    primary

    evidence of an association

    between

    abortion

    and crime

    comes from two sets of re-

    gressions.

    In the

    first,

    rates of violent

    crime,

    property

    rime,

    and murder

    by

    state

    and

    year

    are

    regressed

    n what he authors

    erm,

    he effective

    abortion ate.The latter

    is an

    average

    of state

    abortion atios

    rom

    1970 to

    1985

    weightedby

    the

    proportion

    f

    arrestees

    "exposed"

    o

    legalized

    abortion.4

    n

    the

    second

    set of

    regressions,

    he

    loga-

    rithmof arrests or violent

    and

    property

    rime

    by single

    year

    of

    age

    is

    regressed

    on

    the state abortion atio

    the

    year

    beforethe

    cohortwas

    born.

    Arrests

    pertain

    o teens

    and

    young

    adults 15 to 24

    years

    of

    age

    between1985 and

    1996,

    which

    correspond

    to

    birth cohorts rom 1961

    to

    1981.

    Donohue and Levitt

    assume that the abortion

    ratio is zero for cohorts

    bornbefore 1974.

    Row

    1 of

    Table

    1

    replicates

    he

    key

    index crime

    regressions

    rom Donohue

    and

    Levitt

    (2001,

    Table

    4).

    Only

    the coefficienton the effective

    abortion ate s shown.

    As Donohueand Levitt

    note,

    an

    increaseof one standard

    eviation

    n

    the effective

    abortion

    atio,

    an increase

    of

    approximately

    00

    abortions

    er

    1,000

    live

    births,

    ow-

    ers crime between 9

    and 13

    percent.

    As Donohue and

    Levitt

    demonstrate,

    hese

    estimatesare

    quite

    robust

    o

    changes

    n the

    set of included

    variables.5

    However,

    he

    estimates are very

    sensitive

    to the

    period analyzed,

    as

    shown

    in

    Rows 2

    and 3.

    Specifically,

    f

    the same

    specification

    s

    in

    Row 1 is estimated

    or the

    years

    1985

    to

    C be the crime

    rate and

    following

    Maddala

    1992)

    write the

    simple

    relationship

    etweencrime and

    the

    observedabortion

    atio as used

    by

    Donohueand Levitt as follows:

    (2)

    C

    =

    A

    +

    e

    p

    <

    0

    Substitute

    a

    +

    u)

    for A in

    Equation

    . It is

    straightforward

    o show

    that

    plim

    b

    =

    P(oaa

    oau)/(aa

    +

    2oa,

    +

    oua)

    where

    aij

    is the relevantcovariance.

    Because

    a,,.

    and

    6,,

    are

    both

    positive

    and

    o,au

    s

    negative,

    he effect

    of the systematic rroron theplim of b is unknown n this simplecontext.

    4. In 45 states

    plus

    the District

    of Columbia

    hey

    assumethe abortion

    atio was zero between

    1961

    and

    1972. For

    the other five states

    they

    estimateabortions or 1970-72

    by backcasting inearly

    rom

    1973

    totals and then assumea zero

    abortion atiofrom 1961 to

    1969.

    5.

    The

    important xception

    s when

    they

    include a

    state-specific

    rend

    erm

    (Donohue

    and Levitt

    2001,

    Table

    5).

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    7

    Table

    1

    The

    Relationship

    between Abortion

    and

    Crime:

    Regressions

    of

    Total Index

    Crime

    Rates and Log Arrests by Single Year of Age for 15- to 24-Year-Olds

    Panel

    A: Index Crime Rates on Effective

    Abortion Ratio

    Violent

    Crime

    Property

    Crime Murder

    Row/period

    1.

    1985-97

    -0.129 -0.091 -0.121

    (0.024) (0.018) (0.047)

    2.

    1985-90

    0.017 -0.033

    0.276

    (0.045)

    (0.018)

    (0.066)

    3. 1991-97

    -0.209

    -0.186 -0.338

    (0.035)

    (0.034)

    (0.053)

    Panel B:

    Log

    Arrests

    on

    Lagged

    Abortion

    Ratio

    Violent Crime

    Property

    Crime Murder

    Arrest

    Arrest Arrest

    4.

    1985-96 -0.015

    -0.040

    -0.028

    (0.003) (0.004) (0.006)

    5. 1985-90

    0.020

    -0.028 0.041

    (0.006)

    (0.006)

    (0.013)

    6.

    1991-96

    -0.011

    -0.041 -0.013

    (0.007) (0.006)

    (0.007)

    7. Birth

    cohorts

    -0.009 0.011 0.009

    1974-81

    (0.008) (0.008) (0.022)

    Figures

    standard

    rrors)

    re he

    coefficients

    on the

    effective

    abortion

    atio

    PanelA)

    or

    the

    lagged

    abortion

    ratio

    Panel

    B).

    Rows

    1

    and4

    replicate

    he

    regressions

    rom

    Tables

    4

    and 7 in DonohueandLevitt

    (2001).

    Rows

    2, 3, 5,

    and

    6

    estimate he

    same

    specifications

    ut

    for

    the

    designated ubperiods.

    Row

    7

    limits the

    regressions

    f

    log

    arrests o cohorts or

    which

    abortion ata

    are available.This

    sample

    ncludesarrests

    f

    individuals

    15 to

    22

    years

    of

    age

    and

    years

    1989

    to 1996.

    Following

    Donohueand

    Levitt,

    the abortion

    ratio

    has

    been

    multipliedby

    100

    in

    all

    regressions.

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    8

    The Journal

    of

    Human Resources

    45

    -

    40-> . TTeen Repeal

    ?35

    -

    '~

    30-

    Young

    Adults

    Repeal

    ?*

    25-

    1

    20-

    15

    -

    Young

    Adults

    Nonrepeal

    10-

    5

    -

    Teen

    Nonrepeal

    0 I

    85 86 87

    88 89 90 91 92 93 94

    95 96

    97

    Year

    Figure

    la

    White

    Homicide Rates

    for

    Teens

    (15-19)

    and

    Young

    Adults

    (20-24)

    by

    Repeal*

    and

    Nonrepeal

    States,

    1985-97

    1990,

    the coefficient

    on

    the effective abortion ratio becomes

    positive

    and

    statistically

    insignificant

    in

    the case

    of

    violent

    crime,

    negative

    but

    greatly

    reduced

    in

    the

    case

    of

    property

    crime

    (p

    <

    .10),

    and

    positive,

    very

    large,

    and

    statistically significant

    in

    the case of murder. When

    I estimate

    the model for the

    years

    1991

    to

    1997,

    the results

    are

    largely

    reversed. For

    each

    crime,

    the

    coefficient

    on the

    effective

    abortion

    ratio

    is

    negative

    and

    statistically

    significant.

    Indeed,

    the

    change

    in the effective

    abortion

    ratio between

    1991

    and 1997

    multiplied by

    its coefficient

    in

    the murder

    regression

    explains

    the entire fall in

    homicide

    between

    1991

    and

    1997.6

    Estimates

    in

    Panel

    B

    are

    from the

    same exercise

    as

    in

    Panel A

    but

    applied

    to

    age-

    specific

    arrests. In these

    regressions,

    the natural

    logarithm

    of arrests for

    15-

    to

    24-

    year-olds by single year

    of

    age

    are

    regressed

    on the

    abortion ratio in

    the

    year

    before

    each

    cohort

    was born. The unit of observation is the

    cohort/state/age

    cell. Estimates

    in Row 4

    again replicate

    the results

    in

    Donohue

    and

    Levitt

    (2001,

    Table

    7);

    estimates

    in Rows 5 and 6 are for

    the

    designated subperiods.

    The

    pattern

    observed with the

    index

    crimes

    in

    Panel

    A is

    repeated

    in

    Panel

    B: abortion

    is

    inversely

    related to arrests

    (p

    <

    .01)

    over the full

    period,

    but the

    association

    reverses

    sign

    for

    violent crime

    and murder arrests between 1985

    and

    1990,

    and is

    consistently negative

    when

    esti-

    mated for

    years

    1991 and

    1996.

    The lack of

    temporal homogeneity

    in

    the abortion-crime association

    points

    to

    problems

    of omitted variables.7

    As

    shown in

    Figure

    1,

    murder rates

    among

    teens

    6. The murder ate ell from

    9.8

    to

    6.8

    per

    100,000

    between1991

    and

    1997,

    a

    declineof 31

    percent.

    The

    effective abortion ate

    for

    murder

    ose from 33 to 142

    per

    1,000

    live

    birthsover

    the same

    period.

    Thus,

    the

    predictedchange

    in the

    log

    murderrate

    based on the

    regression

    result

    for

    murder n Row 3 is

    -0.00338*(142

    -

    33)

    =

    -0.368

    or

    36.8

    percent.

    7. Donohue and Levitt

    (2003)

    argue

    hat tests of

    abortionand total

    crime are

    weak between 1985 and

    1990

    becausea

    relatively

    mall

    proportion

    f all

    criminalswere

    exposed

    o

    legalized

    abortion efore 1990.

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    9

    300-

    Teen

    Repeal

    >250-

    20000

    Young

    Adults

    Repeal

    .~

    150-

    0

    100

    -

    _

    ^^[

    Young

    Adult

    Nonrepeal

    50

    Teen

    Nonrepeal

    85

    86

    87

    88 89

    90 91 92

    93

    94

    95

    96 97

    Year

    Figure

    lb

    Black

    Homicide

    Rates

    for

    Teens

    (15-19)

    and

    Young

    Adults

    (20-24)

    by Repeal

    and

    Nonrepeal

    States,

    1985-97

    *Repeal

    States:

    AK,

    CA,

    DC, HI, NY,

    WA

    Source:

    FBI's

    Supplemental

    Homicide

    Reports

    and

    young

    adults

    rise

    rapidly

    between 1985

    and

    1992 and then fall

    precipitously.

    Lagged

    abortion

    ratios are also

    rising during

    this

    time.

    Year

    fixed effects remove

    national trends in both abortion

    and

    crime,

    but

    they

    do not

    eliminate

    confounding

    from

    state-specific

    shocks

    associated

    with

    say,

    the diffusion of

    crack cocaine.

    One

    solution

    is

    to include

    controls for

    state-specific

    linear or

    quadratic

    trends

    but such

    terms remove all variation

    in the abortion

    ratio.8

    The

    other

    notable

    result

    in

    Table 1 is the

    lack

    of

    any

    association between abortion

    and arrests when the

    analysis

    is limited to

    cohorts

    for

    which data on

    abortion

    exist

    (Table

    1,

    Row

    7).

    These

    regressions

    associate

    arrests between

    1989

    and

    1996

    to

    abor-

    tion between 1974 and 1981. This is a

    period

    of

    rapid

    growth

    in

    reported

    legal

    abortion

    and

    there

    is

    substantial

    variation both

    within and between states.

    Moreover,

    the

    As

    evidence,

    hey

    point

    to their

    relatively

    ow

    effective abortion atioover this

    period.

    However,

    he

    low

    figure

    results from

    their

    inappropriate

    ssumption

    hat

    there were

    no

    abortions

    prior

    to

    1973

    in the

    45

    nonrepeal

    tates.

    Early

    surveillance

    y

    the CDC

    found hat here

    were

    175,508

    reported

    bortions

    n

    1970,

    480,259

    in

    1971,

    and

    586,760

    in 1972 n the

    UnitedStates

    Centers

    or

    Disease

    Control

    1971,

    1972,

    1973).

    Moreover,

    he residentabortion

    atio n the

    repeal

    states:

    Alaska, California,

    Washington

    D.C.,

    Hawaii,

    New

    York,

    and

    Washington,

    was 340 in 1971

    and370 in 1972

    (Author's

    alculations

    based

    on data rom

    CDC

    (1972,

    Table

    4)

    and

    CDC

    (1974,

    Table

    5).

    According

    o

    CDC

    data,

    he abortion atio or the entire

    US

    peaked

    n

    1981 at 358

    (Koonin

    et al.

    1997).

    In

    other

    words,

    cohorts

    born

    in

    repeal

    states between

    1971and 1973 wereexposedto a level of abortionhatexceededthemaximum verageexposure or the

    entire

    country

    at

    any

    time

    since abortionbecame

    egal.

    8.

    The

    adjusted

    R-squared

    n

    a

    regression

    f

    the

    effective

    abortion atio

    on state

    dummies,

    year

    dummies,

    and

    state-specific

    inear rends

    s over

    0.99,

    which

    explains

    the

    sensitivity

    of Donohue

    and

    Levitt's esti-

    mates to the inclusionof

    state-specific

    inear

    rend erms

    Donohue

    andLevitt

    2001,

    Table

    5).

    Moreover,

    quadratic

    rendsare more

    appropriate

    iven

    the

    curvilinear

    rajectory

    f

    crime

    rates,

    but theirestimates

    become nonsensicalwhen

    such termsare

    included.

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    Journal

    of

    Human Resources

    matching

    of

    arrest rates

    by single year

    of

    age

    to

    the abortion

    ratio in the

    year

    the

    cohort was

    "in

    utero"

    is

    a more direct

    means

    of

    linking

    the

    exposure

    to the

    outcome

    than is the analysis of the total crime rateregressed on an "effective abortionratio,"

    a

    highly aggregated

    measure of

    exposure.

    The absence of a correlation between

    abor-

    tion and

    arrests

    n

    this

    subsample

    suggests

    that Donohue and Levitt's decision

    to

    code

    the abortion

    ratio as zero

    prior

    to

    legalization

    may

    be

    driving

    their

    results.

    Alterna-

    tively,

    the

    endogeneity

    of

    abortion

    may

    explain

    the

    lack

    of an association with

    arrests.

    States

    in which

    the cost of abortion is

    lower

    may

    have

    greater

    sexual

    activity,

    lower

    use of

    contraception

    and

    higher

    abortion

    rates than states in which

    the

    cost and

    stigma

    associated

    with

    abortion are

    greater.

    If

    true,

    then

    variation in

    abortion

    may

    be

    only

    weakly

    associated

    with differences

    in

    unintended

    childbearing.9

    In

    the

    empirical

    analysis

    that

    follows,

    I

    attempt

    to

    address

    each

    of the

    identification

    issues

    just

    discussed. The

    advantage

    of the difference-in-differences

    strategy

    is that

    by staying

    close

    to the

    "experiment"

    made available

    by

    the

    legalization

    of

    abortion,

    I associate

    changes

    in crime

    with

    plausibly exogenous

    changes

    in

    unintended fertil-

    ity.

    At

    the same

    time,

    I

    avoid

    problems

    with

    poorly

    measured

    abortion. What

    I

    lose

    is

    any

    dose-response

    effect associated with

    variation

    in

    unwanted

    childbearing.

    How-

    ever,

    in some

    analyses

    I

    estimate

    models

    separately

    for

    states

    with

    abortion rates

    above and below

    the median abortion

    rate

    in

    1973.

    If

    abortion

    rates

    were

    essentially

    zero

    in

    1972

    in

    the

    nonrepeal

    states,

    as

    Donohue and

    Levitt

    assume,

    then

    the

    effects

    should be more

    negative

    for the

    states with

    greater

    post-Roe

    abortion rates.

    III.

    Empirical

    Specification

    and

    Results

    A.

    Comparison

    by

    Year

    of

    Birth in

    Repeal

    and

    Nonrepeal

    States

    Abortion laws

    in

    Alaska,

    California, Hawaii,

    New

    York,

    Washington,

    and the

    District

    of

    Columbia,

    what I have

    referred

    to

    as

    the

    "repeal

    states,"

    changed

    dramatically

    between late 1969

    and 1970. The

    result

    was

    de

    jure

    or de

    facto

    legalization

    in

    repeal

    states almost three

    years prior

    to

    national

    legalization

    in

    1973.

    Thus,

    there are

    two

    major policy

    changes

    that

    I

    use to

    identify

    effects

    of

    abortion

    on crime:

    early legaliza-

    tion

    among

    cohorts from

    repeal

    states

    and national

    legalization following

    Roe.

    I

    limit

    the

    analysis

    to 15- to 24-years-olds because the Uniform Crime

    Reports

    record arrests

    by single

    year

    of

    age

    for this

    group only.

    These

    are

    the same

    data

    used

    by

    Donohue

    and

    Levitt.

    In

    addition,

    I

    analyze

    homicide offenses

    as

    recorded on

    the

    FBI's

    Supplemental

    Homicide

    Reports

    (SHR)

    [Fox 2000].

    These are

    also available

    by

    single

    year

    of

    age.10

    I

    further

    limit

    this

    sample

    to

    cohorts

    born

    between 1967 and

    1979.1"

    9.

    Joyce

    (2001)

    shows that the

    resident

    abortion

    ate

    n

    repeal

    states

    s

    almostdoublethat of

    nonrepeal

    statesbetween 1975

    and

    1985,

    but that the

    fertility

    rate

    s

    the

    same

    in

    both

    groups

    of

    states.The

    higher

    pregnancy

    ate but similar

    ertility

    rate

    in

    repeal

    states

    s

    consistent

    with

    greater

    exual

    activity

    and/or

    less

    contraception

    nduced,

    n

    part,

    by

    the

    protection

    gainst

    unwanted

    hildbearing

    fforded

    by

    the

    rela-

    tively

    greater

    accessibility

    of

    abortion ervices.

    10. Thebiggestdrawback o the SHR is theirreporting eficiencies. nformationn the age andrace of

    the

    offender

    when

    missing

    is

    imputed

    based

    on

    the known distribution

    y

    age/race/sex

    of victims

    and

    offenders

    by

    state and

    year

    (Maltz

    1999).

    Nevertheless,

    Supplemental

    Homicide

    Reports

    are

    widely

    used

    to

    track

    crime

    by age

    and race

    (Maltz

    1999;

    Cook and Laub

    1998;

    Fox

    and

    Zawitz

    2000).

    Moreover,

    use

    them in

    conjunction

    with

    murderarrestrates.

    Thus,

    a

    consistent

    relationship

    etween abortion

    nd

    crime

    across

    these two

    measures

    of homicide

    provides

    an

    important

    heck of these

    data.

    11.

    Cohort

    s

    equal

    to

    year

    minus

    age.

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    Joyce

    11

    I

    structure

    he

    difference-in-difference

    DD)

    analysis

    n

    two

    ways.

    In

    the

    first,

    I

    comparechanges

    in

    crime

    by

    birth

    cohorts

    before and after

    exposure

    o

    legalized

    abortion.This is closest to what Donohueand Levittdo, but theyuse a continuous

    measureof

    abortion o

    proxy

    unwanted

    childbearing.

    The

    identifying

    variation s

    based on

    cross-state

    changes

    n

    crime

    among

    cohortsof

    the same

    age.

    In

    the

    other

    set of

    DDs,

    changes

    n

    crime

    among

    cohorts

    before and

    after

    exposure

    o

    legalized

    abortion

    n

    utero

    are

    compared

    o

    changes

    among

    older

    cohorts who are

    close in

    age,

    but who

    were

    unexposed

    o

    legalized

    abortion.The

    identifying

    variation

    omes

    from

    within-state

    hanges

    in

    crime.

    In

    the cross-stateDDs

    exposure

    s

    based on

    state/year-of-birth

    nteractions.

    pe-

    cifically,

    I

    definebirth

    years

    1967-69 as the

    pre-exposure

    ears

    and

    1971-73 as the

    post-exposure

    ear

    in

    repeal

    states.I

    subtract

    hanges

    n

    crime

    among

    cohorts

    born

    between1967-69 and 1971-73 in nonrepeal tates fromchangesobserved or the

    same

    cohorts

    n

    repeal

    states. The

    identifying

    assumption

    s that

    changes

    n

    crime

    among

    cohorts n

    nonrepeal

    tates are a

    good

    counterfactualor

    changes

    in

    repeal

    states.

    A

    potentialproblem

    with this

    strategy

    s that

    hard o

    measure

    period

    effects,

    such as the

    spread

    of

    crack,

    may

    affect crime n

    repeal

    and

    nonrepeal

    tatesat differ-

    ent

    times and with different

    ntensity.

    f

    so,

    then

    nonrepeal

    tates

    do

    not

    provide

    an

    adequate

    ounterfactual

    see

    Figures

    la

    and

    lb).

    To

    improve

    the

    counterfactual,

    estimate

    models limited to a

    subsetof states n

    which

    therewas

    evidence of

    crack/

    cocaine use

    in

    their

    major

    cities

    between

    1984

    and

    1989 as

    reported y

    Grogger

    and

    Willis

    (2000).

    These nclude

    Colorado,

    Florida,

    Georgia,

    llinois,

    Indiana,

    Louisiana,

    Maryland,

    Massachusetts,

    Michigan,

    Missouri,

    New

    Jersey,

    Ohio,

    Pennsylvania,

    Texas,

    and

    Virginia.

    referto

    these as the

    comparison

    tates. The

    purpose

    s to

    pair

    repeal

    states o a subsetof

    nonrepeal

    tates hat

    may

    have

    experienced

    imilar

    period

    effects. The

    relevant

    regression

    s

    as follows:

    (1)

    LnCajy

    =

    Po

    +

    f,(Repealj

    *

    Y70y)

    +

    2(Repealj

    *

    Y7173y)

    +

    3(Repealy

    *

    Y7476y)

    +

    -4(Repealy

    *

    Y7779y)

    +

    Uaj

    +

    Vay

    +

    ajy

    whereLnCajys the natural ogarithmof arrestsor homicides for age group,a, in

    state,

    ,

    and

    year

    of

    birth,

    y.

    This is the

    same

    dependent

    ariableused

    by

    Donohue

    and Levitt

    (2001).

    Repeal

    is a

    dummy

    variable

    hat is one

    for

    repeal

    states;

    Y70,

    Y7173,

    Y7476,

    and Y7779 are

    dummy

    variables or cohorts

    born

    n

    the

    designated

    years.

    The

    omitted

    category

    ncludesthe birth

    years

    1967-69.

    Equation

    1

    also in-

    cludes fixed

    effects for

    age-state

    (Uaj)

    and

    age-year

    (Vay)

    nteractions.

    Thus

    P2,

    the

    coefficient on the

    interactionof

    Repeal

    and

    Y7173,

    measures the

    proportionate

    change

    in

    crime

    between the

    1971-73 and

    1967-69

    birth

    cohorts n

    repeal

    states

    relative o

    nonrepeal

    tates.'2

    The coefficienton

    the other

    nteraction

    erm,

    P3,

    mea-

    12.

    Significant

    ourt decisions in the

    fall of

    1969 affected

    abortion aws in

    California

    nd

    Washington,

    DC.

    Legalization

    ccurred

    n

    Alaska in

    July

    of

    1970,

    Hawaii n

    Marchof

    1970,

    New York in

    July

    of

    1970 and

    Washington

    n

    Novemberof

    1970. Given

    that the full

    impact

    of

    these reformson

    unintended

    childbearing

    would not be evident until

    1971,

    I

    treat

    Repeal

    *1970 as a

    separate

    nteractionn

    order o

    compareperiods

    clearlypre

    and

    post

    the

    change

    n

    the

    legalization

    see

    Sklar and Berkov

    1974;

    Gruber,

    Levine and

    Staiger

    1999).

    Including

    1970

    in

    the

    prelawperiod

    does

    not affect

    my

    results.

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    12

    The Journalof HumanResources

    sures

    the effect of national

    egalization.

    f

    abortion

    owers

    crime,

    then

    Roe v. Wade

    should

    bring

    about a relative

    mprovement

    n

    crime rates

    among

    nonrepeal

    tates.

    As a result,P3shouldapproach ero dependingon the speedof adjustment;nd[4

    should

    unambiguously

    qual

    zero as

    adjustment

    o national

    egalization

    s

    completed

    (Gruber,

    Levine,

    and

    Staiger

    1999).

    Results

    from the estimateof

    Equation

    1 are shown in

    Table 2.

    I

    display only

    the coefficientson the interaction

    erms

    [2,

    P3

    and

    P4

    n

    Equation

    1. There

    are two

    specifications

    or each

    measureof crime. The first

    includes all states

    and contrasts

    changes

    n crime

    between

    repeal

    relative o

    nonrepeal

    tates.13 he

    second imits the

    sample

    o

    repeal

    and

    15

    comparison

    tates.

    I have

    also includedestimatesof the reduced-form

    egressionusing

    the natural

    log

    of state

    fertility

    rates as the

    dependent

    ariable

    Columns

    1

    and

    2).

    These esti-

    mates are almost identical o those of Levineet al. (1999).14They show that

    early

    legalization

    n

    the

    repeal

    states was

    associatedwith

    approximately

    6

    percent

    ela-

    tive decline

    in

    fertility

    rates

    regardless

    of

    whether use all 51

    states

    (Column1)

    or

    only

    repeal

    and

    comparison

    tates

    (Column

    2).

    National

    egalization

    ollowing

    Roe

    v. Wadehad no additional

    mpact

    on

    fertility

    rates

    in

    repeal

    states.

    Estimates n

    the first

    row

    of Table

    2

    indicate hat

    arrestsand

    homicidesfell for

    cohorts

    born

    between

    1971 and 1973 relative o those

    born

    between

    1967 and

    1969

    in

    repeal

    relative to

    nonrepeal

    tates. These estimates

    are

    largely

    consistentwith

    resultsobtained

    by

    Donohueand Levitt

    (2001).

    Violent crime

    arrests,

    or

    instance,

    declined5.0

    percent

    more n

    repeal

    relative o

    nonrepeal

    tatesover this

    period Col-umn

    3).

    This decline is similar n

    magnitude

    o the effect obtained

    by

    Donohue

    and

    Levittwith a continuous

    measureof

    abortion.l5

    owever,

    wo other

    patterns

    merge

    from these results

    that are less

    supportive

    of the

    Donohue and Levitt

    hypothesis.

    First,

    estimatesbasedon the

    subsample

    f

    repeal

    and

    comparison

    tatesare

    relatively

    small in

    magnitude

    and

    statistically nsignificant.

    The coefficient on

    violent crime

    arrests,

    or

    instance,

    is

    -0.026,

    half as

    large

    as when

    all states are

    included.

    A

    distinguishing

    haracteristicf the

    comparison

    tates s that

    hey

    all have

    large

    urban

    centerswith a sizeable

    African-American

    opulation.

    As

    such,

    the

    comparison

    tates

    may provide

    a more

    crediblecounterfactualor

    changes

    n

    crime

    among

    the

    repeal

    states,which are dominatedby Californiaand New York. The otherinconsistent

    13. The unit of observation s the

    cohort/state/age

    cell. There are

    potentially

    ,896

    observations

    iven

    10

    age

    groups,

    51 states and various

    years.

    Threehundred nd

    forty-one

    observations n arrests

    nd 157

    on homicideare

    missing

    because

    some states did not

    report

    arrestsor

    homicides

    n

    selected

    years.

    There

    are3 cells with zerosfor

    violent

    arrests,

    66 for murder rrests nd

    739

    for

    homicides.The

    model ncludes

    dummy

    variables or all

    age

    and

    state nteractions s well as

    age

    and

    year

    of birth

    nteractions,

    s

    repre-

    sented

    by

    the last two termsof

    Equation

    1. The

    specification

    s

    identical o that of Donohue

    and Levitt

    (2001)

    with the

    important

    difference hat

    I

    have included

    categorical

    variables o

    measuredifferential

    exposure

    o

    legalized

    abortion nsteadof the actual

    abortion atio.

    14.

    Unlike

    Levine et al.

    (1999),

    I include

    Washington,

    D.C.

    as

    a

    repeal

    state.

    15. Donohueand Levitt

    multiply

    he

    coefficienton abortion

    by

    350,

    which is

    the difference n abortion

    ratiosbetweenstates n thetop thirdversus bottom hirdof abortion atios.Using the results n Row 4,

    Column

    1

    of Table

    1,

    this

    yields

    an effect of

    -5.3

    percent

    -0.015

    *

    350).

    The

    precision

    of theirestimates

    andmine differbecause

    I

    allow for a more

    general

    covariance tructure

    mong

    states

    following

    Betrand,

    Duflo,

    andMullainathan

    2002).

    This s

    implemented

    n Stata

    by

    clustering

    n

    state.WhenI redo

    Donohue

    and Levitt's

    regressions

    of

    log

    arrests

    and allow for a more

    general

    covariance

    tructure,

    he

    standard

    errors

    double. This is not

    surprising

    ince

    60

    percent

    of their observations

    ssume an abortion atio of

    zero,

    which

    probably

    nducessubstantial

    erial

    autocorrelation.

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    Table

    2

    Reduced-Form

    Estimates

    of

    Fertility

    Rates and

    Log

    Arrests and

    Murders

    among

    15- to

    24-Yea

    and

    Nonrepeal

    States

    1985-96

    Ln

    Fertility

    Rate Ln

    Violent

    Crime Ln

    Property

    L

    Women 15-44 Arrests CrimeArrests

    (1)

    (2)

    (3)

    (4)

    (5)

    (6) (7)

    Repeal

    71-73

    -0.065* -0.063*

    -0.050

    -0.026

    -0.066+

    -0.030 -0.108

    (0.011)

    (0.014)

    (0.066)

    (0.070)

    (0.032) (0.039)

    (0.061

    Repeal

    74-76

    -0.015 -0.002

    -0.021

    0.027

    -0.069

    -0.014

    -0.167*

    (0.021) (0.025)

    (0.103)

    (0.116)

    (0.063) (0.082)

    (0.063

    Repeal

    77-79 0.004 0.010

    -0.066

    0.022

    -0.089 -0.010

    -0.409*

    (0.033) (0.037) (0.123) (0.145) (0.089) (0.126) (0.135

    Only repeal

    and

    No Yes

    No

    Yes

    No

    Yes

    No

    comparison

    states?

    R-squared

    0.963 0.974

    0.983

    0.979

    0.982 0.976

    0.929

    N

    969 399

    4,552

    1,890

    4,555

    1,890 3,889

    Except

    for

    Columns 1

    and

    2,

    coefficients

    standard

    rrors

    below)

    are

    relative

    changes

    n arrestsand

    homicides n

    repea

    birthcohorts

    1971-73, 1974-76,

    and

    1977-79)

    relative o the

    1967-69

    birth

    cohorts.

    Columns

    1

    and 2 show

    the redu

    each

    outcome

    here are

    two

    specifications:

    Columns

    1,

    3, 5, 7,

    and

    9 use all

    states;

    Columns

    2, 4, 6, 8,

    and 10 use

    onl

    list of comparisontates).All specificationsorarrests ndhomicides nclude ixedeffectsfor interactions f ageandstat

    1 in

    the

    text).

    Standard

    rrorshave been

    adjusted

    or

    intra-class

    orrelation

    within state

    by clustering

    on state with

    Stat

    cells in the

    full

    sample

    of

    arrestand homicides:10

    age groups,

    51

    states and a

    variednumberof

    age/year

    cells since

    t

    1967 and

    1979. Cells

    are lost due

    to

    nonreporting

    y

    states and

    zero

    crimes

    (see

    Footnote 13 in

    text).

    All

    regression

    +p

    <

    .05;

    *p

    <

    .01

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    14

    The Journalof HumanResources

    pattern

    s that estimates

    of

    P2

    and

    33

    n

    Equation

    1 exceed

    those of

    P1

    n

    absolute

    value

    for

    murderarrestsand murders.

    As

    Gruber,Levine,

    and

    Staiger

    (1999)

    have

    argued,one wouldexpecta relativedecrease n adverseoutcomes n nonrepeal tates

    following

    national

    egalization,

    which

    shoulddrive

    52

    and

    [3

    to zero.

    Instead,

    find

    thatcohorts

    born

    between 1977

    and

    1979

    n

    repeal

    states

    experience

    elativedeclines

    in

    murdersand murderarrestsof

    between 28 to

    41

    percent,

    much

    larger

    than

    the

    declines

    experienced mong

    he 1971-73

    birth

    cohorts.

    mportantly,

    here s no

    rela-

    tive decrease

    n

    fertility

    or cohorts

    bornbetween 1977 and

    1979,

    which

    undermines

    a link between abortion

    and

    crime.16

    Lastly,

    I

    divide

    the

    sample

    between

    1985-90

    and

    1991-96 and reestimate

    Equa-

    tion

    1

    separately

    or the two

    subperiods.

    The results

    or

    all states

    are shown

    n

    Table

    3. The

    pattern

    s

    similar o what occurredwhen

    I

    split

    the

    sample

    in Table 1. If I

    restrict he sample o thosearrestedbetween1985 and 1990,I find thatexposure o

    legalized

    abortion n

    the

    repeal

    states is

    positively

    related

    o arrests

    and

    murders.

    By

    contrast,

    nalyses

    of arrestsand

    murders rom 1991 to

    1996 reveal

    the

    opposite.

    Moreover,

    he

    coefficients

    n each

    subperiod

    are

    large

    in

    absolutevalue and

    they

    are

    unexpectedly

    arger

    for

    cohorts

    born after 1973 relative to

    those

    born

    before

    1973.

    The

    temporal nconsistency

    alls into

    question

    he

    DD

    strategy

    based on

    changes

    in similar cohorts

    across states.

    Changes

    n

    crime

    in

    nonrepeal

    tates

    will

    be an

    inappropriate

    ounterfactual,

    f

    crack

    markets

    developed

    earlier

    and

    had a

    greater

    impact

    on state

    crime rates

    in

    repeal

    relativeto

    nonrepeal

    tates.

    I

    turn,

    therefore,

    to

    my

    alternative

    trategy

    of

    using

    a within-state

    omparison

    group

    to

    adjust

    for

    hard o measure

    period

    effects.

    I focus

    firston the

    1985-90

    period,

    which

    provides

    a broad

    comparison

    of

    aggregated

    rime and

    arrestrates

    of

    teen and

    young

    adults.

    Donohue

    and

    Levitt have criticized

    my

    use of this

    period,

    since I

    fail

    to

    use data

    from he 1990s.

    However,

    1985-90

    is a useful

    period

    because can createa

    plausible

    within-state

    omparison roup

    hat

    was

    clearly

    affected

    by

    the

    upsurge

    n

    crime,

    but

    thatwas

    unexposed

    o

    legalized

    abortion.

    econd,

    I

    can

    analyze

    he same

    experiment

    by

    race

    given

    the

    availability

    of

    population

    data

    by

    state,

    year,

    and race for five-

    year age groups.

    This

    adds an

    important

    imension

    o

    the test

    since the

    legalization

    of

    abortion

    had a

    muchlargereffect on black relative to white fertility(Levineet

    al.

    1999;

    Angrist

    and

    Evans

    1999).

    I then

    turn

    o a test of

    abortionand crime

    using

    arrest

    and homicide rates in

    1990s.

    I

    have

    to narrowthe

    age groups analyzed

    n

    order o

    isolate

    those

    exposed

    and

    unexposed

    o national

    egalization

    ollowing

    Roe.

    However,

    I

    use some of

    the

    most

    crime-prone ge groups

    and

    the narrow

    age

    bands

    have the

    advantage

    f

    minimizing

    differences

    n

    age-crime

    profiles

    between he ex-

    posed

    and

    comparison

    roups.

    16. There

    s

    virtually

    no

    difference

    n

    fertility

    rates

    between

    repeal

    and

    nonrepeal

    tates

    for the

    years

    1977-79

    despite

    he fact

    that he abortion ate s 76

    percent

    greater

    n

    repeal

    states

    see

    Figure

    1 in

    Joyce

    2001). For abortion o lower crime, therefore, t must be argued hatabortion mproved he timingof

    births,

    which

    n

    turn

    had an

    enormous

    ffect on

    the

    well-being

    of

    the effected

    cohorts.

    ndeed,

    he

    effects

    of better-timed

    irths

    on

    homicidehave

    to

    be an

    orderof

    magnitude

    greater

    han the effects associated

    with an

    actual

    decrease

    n

    fertility

    or this

    story

    to hold.

    This

    seems

    implausible

    n

    light

    of

    the recent

    literature

    n the

    effects

    of

    delayedchildbearing mong

    teens

    (Geronimous

    nd Korenman

    1992;

    Hotz,

    McElroy,

    and Sanders

    1999).

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    Table 3

    Split-Sample Reduced-form

    Estimates

    of Log

    Arrests and Murders

    among

    15- to 24-Year-Olds

    and Nonrepeal States: 1985-90 and 1991-96

    Ln

    Violent

    Crime Ln

    Property

    Crime

    Arrests

    Arrests

    Ln

    Murder

    Ar

    (1)

    (2) (3)

    (4)

    (5)

    1985-90

    1991-96 1985-90

    1991-96

    1985-90 19

    Repeal

    71-73 0.054 -0.045 0.009

    -0.097+

    0.106 -0

    (0.061) (0.054) (0.027) (0.044) (0.059) (

    Repeal

    74-76 0.194

    -0.012 0.055

    -0.139

    0.162 -0

    (0.118)

    (0.076)

    (0.060) (0.081) (0.208)

    (

    Repeal

    77-79

    -0.054

    -0.183

    -0

    na

    (0.101)

    na

    (0.123)

    na

    (

    R-squared

    0.990 0.987 0.995

    0.987

    0.929

    N

    1,917

    2,635 1,919

    2,636

    1,901

    2

    See

    note

    to Table 2.

    "na,"

    not

    applicable

    ince

    15-year-olds

    orn

    n

    1977 would be arrested fter 1990.

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    16

    The Journal

    of Human Resources

    14-

    ~~~~~12

    -~-

    -TeenRepealYoung

    Adult

    Repeal

    10

    -

    8

    X

    6

    TeenComparison

    6

    ,

    YoungAdultComparison

    4

    2-

    0

    85

    86 87 88

    89

    90 91

    92 93 94

    95 96

    Year

    Figure

    2a

    Violent

    Crime

    Arrest Rates

    for

    Teens and

    Young

    Adults

    by

    Repeal

    and

    Compari-

    son States*

    B.

    Comparisons

    by

    Year

    of

    Crime within

    Repeal

    and

    Nonrepeal

    States

    In this

    analysis

    I

    compare

    the

    change

    in arrests

    and homicide rates

    among

    teens

    between

    1985

    and

    1990

    to

    the

    change among young

    adults. Teens and

    young

    adults

    in

    1985

    were born

    prior

    to

    1971

    and thus

    unexposed

    to

    legalized

    abortion

    in utero.

    By

    1990,

    almost all

    teens had

    have been born after 1970

    but

    few of the

    young

    adults.

    Thus,

    teens

    in

    repeal

    states

    go

    from

    unexposed

    to

    exposed

    between 1985

    and 1990

    and

    young

    adults

    remain

    essentially unexposed.

    A

    limitation of

    using

    a within-state

    comparison

    group

    is

    that the

    age-crime profile

    of

    teens and

    young

    adults

    may

    differ.

    Thus,

    I allow

    for a third set

    of

    differences

    (DDD)

    in

    which

    I

    subtract

    the

    DD in

    nonrepeal

    states from

    the DD

    in

    repeal

    states. Since

    few teens

    in

    the

    nonrepeal

    states

    were exposed to legalized abortion during this period, the DD in nonrepeal states

    measures

    age

    effects under the

    assumption

    of common

    period

    and cohort

    effects.

    Figures

    2

    and 3

    present

    time-series

    of arrests

    and homicide rates

    stratified

    by

    repeal

    and

    comparison

    states.

    A

    key

    observation

    is that the level and

    pattern

    of crime

    among

    teens

    and

    young

    adults

    is more similar within

    states

    than across.

    This

    provides

    visual

    support

    for the use

    of a

    within-state

    DD. To test for a cohort

    effect more

    formally,

    I

    estimate

    the

    following regression.

    (2)

    LnCRajt

    =

    Po

    +

    plTeena

    +

    2(Teena*Repealj)

    +

    3(Repealj

    Y8788,)

    +

    P4(Teena*Y8788,)

    +

    [5(Repealj

    *

    Y8990t)

    +

    P6(Teena*

    Y8990,)

    +

    37(Teen*Repeal*Y8990)

    +

    Xj,t

    +

    Uj

    +

    V,

    +

    eajt

    where

    LnCRajt

    s the natural

    logarithm

    of the arrest

    or homicide rate

    for

    age group

    a

    (teen

    or

    young

    adult),

    in

    state

    j,

    and

    year

    t.

    Repeal

    is a

    dummy

    variable

    that is

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    Joyce

    17

    40-

    Teens

    Repeal

    350. -

    30

    Comparison

    825

    X

    15

    Young

    Adults

    Compaison

    Comparison

    10

    5

    0"

    ^

    i

    r

    1

    a

    r ~

    l

    l

    i

    85

    86

    87 88 89 90 91 92

    93

    94 95 96

    Year

    Figure

    2b

    Property

    Crime Arrest

    Rates

    for

    Teens

    and

    Young

    Adults

    by

    Repeal

    and

    Compari-

    son States*

    *Repeal

    tates nclude:

    AK,CA,DC,HI,NY,WA;

    omparison

    tates nclude:

    CO,FL,GA,IL,IN,LA,MD,

    MA,MI,MO,NJ,OH,PA,TX,VA

    50-

    45

    -

    5

    /-

    Teen

    Repeal

    40-

    35-

    ?

    Young

    Adult

    Repeal

    30

    Y25

    20

    ~

    YoungAdult

    Comparison

    _.

    85

    86

    87

    88 89 90 91 92

    93

    94 95 96

    Year

    Figure

    3a

    Murder Arrest Rates

    for

    Teens and

    Young

    Adults

    by Repeal

    and

    Comparison

    States*

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    18

    The

    Journal

    of

    Human

    Resources

    70-

    60 -

    ~~~~~~~~~~60

    ^^^

    ^

    "^~~Teen

    epeal

    50

    40

    -

    Young

    Adult

    Repeal

    $

    30

    Young

    Adult

    Comparison

    20

    Teen

    Comparison

    10-

    0

    85

    86 87 88 89

    90 91 92 93

    94 95 96

    Year

    Figure

    3b

    Murder Rates

    for

    Teens

    and

    Young

    Adults

    by Repeal

    and

    Comparison

    States*

    *Repeal

    states

    nclude:

    AK,CA,DC,HI,NY,WA;

    omparison

    tates nclude:

    CO,FL,GA,IL,IN,LA,MD,

    MA,MI,MO,NJ,OH,PA,TX,VA

    one for

    repeal

    states;

    Y8788 and

    Y8990 are

    dummy

    variables for the

    designated years

    and Teen

    is an indicator of those

    15

    to

    19

    years

    of

    age

    as

    compared

    to

    young

    adults

    ages

    20

    to

    24. The

    omitted

    category

    includes

    the

    years

    1985-86.

    State and

    year

    effects are

    represented

    by

    Uj

    and

    Vt,

    and

    Xjt

    is

    the

    matrix

    of

    control variables used

    by

    Donohue and Levitt

    (2001)

    in

    their

    regressions

    of index

    crime

    rates. The DDD

    estimate

    is

    17,

    which

    measures the

    proportionate change

    in

    arrest

    or homicide rates

    before and

    after

    exposure

    to

    legalized

    abortion

    (years

    1985-86

    versus

    1989-90)

    among

    teens relative

    to

    young

    adults

    in

    repeal

    relative to

    nonrepeal

    states.

    If

    abortion

    lowers crime, then P7 should be negative.17

    Results

    are

    displayed

    in

    Table 4.

    The

    first three

    columns show

    estimates for

    arrest

    rates;

    the next

    three

    columns

    present

    estimates for homicide rates

    for

    all

    perpetrators,

    then

    separately

    for

    whites and blacks. The

    sample

    in Panel A includes all

    available

    states whereas

    Panel

    B

    is

    limited to

    repeal

    and

    comparison

    states

    only.

    The

    figures

    in

    Row

    1

    represent

    the

    difference-in-difference

    of

    arrest and homicide rates

    (in

    logs)

    between

    teens

    and

    young

    adults for the

    years

    1989-90

    and

    1985-86

    in

    repeal

    states.18

    Thus,

    the

    natural

    logarithm

    of violent

    crime arrest rates rose

    0.02

    or

    2.0

    percent

    17. There

    are

    several

    differences

    etween

    Equations

    and2 thatmeritnote. In

    Equation

    I

    analyze

    arrest

    andhomicide ates, nsteadof levels;I also aggregatearrests ndhomicidesby age forteens(ages 15 to

    19)

    and

    young

    adults

    ages

    20 to

    24).

    Aggregation

    lso

    lessens the loss

    of

    cells due

    to zero

    homicides

    n

    a

    semi-logarithmic

    pecification.

    n

    addition,

    he

    regressions

    re

    by year

    of

    arrestor homicide

    and

    not

    by

    year

    of

    birth

    explicitly.

    This makes the

    structure f the

    DDD

    more

    transparent.

    inally,

    the

    analysis

    s

    limited

    to

    the

    years

    1985-90.

    18. The

    DD

    estimates

    are obtained rom the

    regressions.

    Using

    the notation rom

    Equation

    2,

    the

    DD

    estimate or

    repeal

    states

    is

    P6

    +

    V7.

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    Table

    4

    Changes

    in

    Log

    Arrest and Homicide Rates

    for

    Teens

    (15-19)

    Relative

    to

    Young

    Adults

    (20-24

    by Exposure

    to

    Legalized

    Abortion,

    1985-90

    ArrestRate

    for

    Violent

    Property

    Murder

    Changes

    n

    Arrestsand Homicide

    (90-89)-(86-85):

    Teens Panel

    A:

    newly

    exposed,

    young

    adults

    unexposed

    1.

    DD,

    teens-adults,

    epeal

    states 0.020

    -0.127* 0.379*

    (0.031)

    (0.011)

    (0.050)

    2.

    DD,

    teens-adults,

    onrepeal

    tates -0.010 -0.098*

    0.210*

    (0.036) (0.022)

    (0.044)

    3. DDD

    (Row

    1-Row

    2)

    0.030 -0.029 0.169+

    (0.047)

    (0.025)

    (0.066)

    R-squared 0.934 0.917 0.867

    N 594

    594

    576

    Panel

    B:

    Repeal

    and

    C

    4.

    DD,

    teens-adults,

    epeal

    states

    0.019

    -0.126* 0.380*

    (0.032) (0.011)

    (0.053)

    5.

    DD, teens-adults,

    omparison

    tates

    -0.043 -0.127* 0.243*

    (0.052)

    (0.035) (0.056)

    6.

    DDD

    (Row

    4-Row

    5)

    0.063 0.000

    0.137

    (0.060) (0.036) (0.076)

    R-squared

    0.948

    0.938

    0.919

    N

    242

    242

    241

    Difference-in-difference-in-difference

    DDD)

    estimates how relative

    changes

    n arrest

    and

    homicideratesbetween hose

    in

    repeal

    and

    nonrepeal

    tates

    [Equation

    in

    the

    text].

    There

    are 612

    possible

    state/age/year

    cells

    in the full

    sample

    (5

    cells

    are

    due to a

    nonreporting y

    statesand/or zero crimes.Standard rrorsare in

    parentheses.

    Models

    ncludecontrols

    generosity,

    oncealed

    gun

    aws,

    andbeer ax as in DonohueandLevitt

    2001).

    All

    models nclude tateand

    year

    ixed

    effect

    or

    race-specificpopulation,

    15 to

    24

    years

    of

    age.

    +

    p

    <

    .05;

    *

    p

    <

    .01.

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    20 The Journalof

    HumanResources

    more

    among

    teens relative to

    young

    adults n

    repeal

    states

    between 1989-90 and

    1985-86.

    In

    nonrepeal

    tatesviolent crime arrest

    ates

    fell 1.0

    percent

    more

    among

    teens relative o youngadults(Row 2). The DDD estimates n Row 3 indicate hat

    violent

    crime

    arrestrates

    increased

    3.0

    percent

    more

    among

    teens

    in

    repeal

    states

    relative o teens

    in

    nonrepeal

    tates

    adjusted

    or within-state rends

    n

    arrests.

    The last threecolumnscontrast otal

    homicideratesand

    then

    separately

    or

    whites

    and blacks.

    When limited to

    repeal

    and

    comparison

    tates

    only

    (Panel B),

    we see

    that white teen

    homicide ratesrose 56

    percent

    more than homiciderates

    of

    young

    adults

    n

    repeal

    states and

    44

    percent

    more than in

    comparison

    tates. The corre-

    sponding

    changes

    among

    blacks

    are

    43 and 42

    percentrespectively.Clearly,

    age

    and

    period

    effects are

    huge

    during

    his

    period.

    Not

    only

    is there

    a dramatic elative

    increase

    n

    teen

    homicide

    rates,

    but

    it

    occurs in both

    repeal

    and

    nonrepeal

    tates.

    As a result, heDDD estimatesprovideno evidencethatexposure o legalizedabor-

    tion

    among

    eens

    in

    repeal

    stateshad

    any

    dampening

    ffect

    on

    the

    rise

    in homicide.

    The

    lack

    of

    an

    effect on black

    homicide

    rates s

    particularly

    oteworthy,

    ince

    legal-

    ized abortion

    had a

    greater

    mpact

    on

    black relativeto white

    fertility.

    C.

    Within-state

    Comparisons

    n

    Nonrepeal

    states:

    The

    Effect

    of

    Roe v.

    Wadeon Crime

    The

    next

    set of

    analyses

    takes

    advantage

    of

    the second "natural

    xperiment,"

    he

    national

    egalization

    of