Nudge

Nudge

Improving Decisions About Health, Wealth, and Happiness

Richard H. Thaler, Cass R. Sunstein

Teenage pregnancy is a serious problem for many girls, and those who have one child, at (say) eighteen, often become pregnant again within a year or two. Several cities, including Greensboro, North Carolina, have experimented with a “dollar a day” program, by which teenage girls with a baby receive a dollar for each day in which they are not pregnant.6 Thus far the results have been extremely promising. A dollar a day is a trivial cost to the city, even for a year or two, so the plan’s total cost is extremely low, but the small recurring payment is salient enough to encourage teenage mothers to take steps to avoid getting pregnant again. And because taxpayers end up paying a significant amount for many children born to teenagers, the costs appear to be far less than the benefits. Many people are touting “dollar a day” as a model program for helping reduce teenage pregnancies.

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