In 1973, the U.S. Supreme Court made a landmark ruling, known as Roe vs. Wade, which guaranteed women in America the right to a safe and legal abortion. In June 2022, that ruling was overturned, denying women power over their own bodies and reproductive lives.
Nearly all economists agree that the reversal of Roe will have far-reaching economic consequences. In late 2021, 154 economists wrote to the court describing decades of research that shows how unwanted pregnancies negatively affect women’s education, employment and incomes.
A study from the Institute for Women’s Policy Research (IWPR) showed that abortion restrictions in various states led to economic losses of $105 billion (€100 billion) a year, reducing GDP by 0.5 percent. Treasury Secretary Janet Yellen says this will “set women back decades” and “have very damaging effects on the economy.”
Who is most affected?
Research shows that women of color and other marginalized groups suffer most under abortion restrictions.
In 2014, 49 percent of all abortions in the U.S. were given to women who live below the poverty line.
In 2019, the abortion rate for Black women was 23.8 per 1,000 women. Much higher than for Hispanic women (11.7) and white women (6.6).
Black women are more likely to have unwanted pregnancies because of inequalities in healthcare and the economy. Childbirth risks are also higher for Black women.
Age, education and employment
Since abortion became legal in 1973, the number of teen mothers in the U.S. has gone down by 33 percent.
Women who delay their first pregnancy are more likely to:
- get a university education
- get a better-paying job
- spend more time in employment
Women who are denied abortions are more likely to:
- fall into poverty
- fall into debt (78 percent increase)
- need welfare assistance
- suffer bankruptcy or get evicted from their homes (81 percent increase in public record filings)
The U.S. doesn’t guarantee paid family leave. Such benefits, which are standard in many other rich countries, usually come only with better jobs that require higher education. Childcare costs thousands dollars a year, on average.
When working women become mothers, the gender pay gap grows wider. Working mothers are also less able to save for retirement.
The cost to the states
States that restrict or ban abortion suffer huge opportunity costs. The IWPR study showed that Texas, for example, had $14.6 billion in losses per year.
The reasons include:
- lower labor force participation
- lower earnings (people work less or have lower qualifications because they are caring for children)
- higher employee turnover
- higher rates of absenteeism
In Missouri, GDP would increase by 1.02 percent if abortion were not restricted.