In the following sections, we first review past research.We organize this review around
choice of statistical method to highlight how assumptions, strengths, and limitations of
each method affect estimates of the educational penalty. We also introduce each method
with a brief description of the estimation procedure. We then introduce two additional
strategies not used in this literature—namely, parametric and semiparametric maximum
likelihood (Rindfuss et al. 2007, 2010), which provide (1) an explicit estimate of the
distribution of unobserved heterogeneity affecting both teen childbearing and educational
attainment, and (2) a direct test of the endogeneity of teen childbearing with educational
attainment. Next we conduct analyses that document a range of estimates (between 0.7
and 1.9 fewer years of schooling among teen mothers) and select our preferred estimate
(0.7), derived from semiparametric maximum likelihood estimation, on the basis of
weighing the strengths and limitations of each approach. Based on the range observed
in our study, we conclude that variable statistical methods are the likely source of
inconsistency in past research.We also discuss implications for future research and policy.