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Financial incentives for teen parents are components of state welfare programs intended to encourage enrollment, attendance, and completion of high school as a means of increasing employment and earnings and reducing welfare dependence. The incentives take the form of bonuses and sanctions to the welfare grant related to school enrollment, performance, and completion. The programs typically provide case management and social services to supplement financial incentives.
One study of financial incentives for teen parents met the What Works Clearinghouse (WWC) evidence standards and a second study met WWC evidence standards with reservations. The two studies included more than 2,000 pregnant or parenting teens in the Ohio Learning, Earning, and Parenting program (LEAP) and the California Cal-Learn program. 1
Financial incentives for teen parents had potentially positive effects on staying in school, no discernible effects on progressing in school, and no discernible effects on completing school.
| Staying in school | Progressing in school | Completing school | |
|---|---|---|---|
| Rating of effectiveness | Potentially positive effects | No discernible effects | No discernible effects |
| Improvement index2 | Average: +6 percentile points Range: +5 to +7 percentile points |
Average: +4 percentile points | Average: +4 percentile points Range: +2 to +6 percentile points |
|Institute of Education Sciences
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