How Subsidies Affect Contraceptive Use among Low-Income Women in the U.S.: A Randomized Control Trial
This paper examines how subsidies affect the use of contraceptives among low-income women seeking reproductive health care in the U.S. Study participants were randomized to receive vouchers for contraception, covering up to 50% or 100% of the lowest-cost, available long-acting, reversible contraceptive method (LARC). Women’s choice of method is highly sensitive to price, with the elasticity of LARC take-up ranging from -2.3 to -3.4. The findings imply that a U.S. policy eliminating out-of-pocket costs for Title X women would reduce pregnancies by 5.4%, birth rates by 3.5%, and abortions by 8.1% and save $2.48 billion annually in public expenditures.
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