Local Report: Restrictive Abortion Policies Impact on Arizona Economy

According to the nonpartisan, nonprofit think tank, The Grand Canyon Institute, Arizona is increasingly falling behind in its efforts to attract the next generation of physicians with increasing numbers of emergency room and OBGYN residency applicants expressing concerns about providing comprehensive training in states with restrictive abortion laws; residency applicants in Arizona fell by 18.3% in the 2023-2024 cycle, far more than the national average of +0.4%. According to the report, residency directors reported strong interest from potential residents about the quality of abortion care training available, asking specific questions about how this training will occur and whether they would be trained to competence.

Abortion bans also decrease women’s participation in the workforce, leading to substantial wage loss and reduced economic power for women and their families. For businesses, limited access to reproductive healthcare weakens their ability to build a robust workforce, ultimately affecting their bottom line and state economies.

The GCI report cites a state-level analysis from the Institute for Women’s Policy Research (IWPR) estimating a 1% loss of labor force participation in Arizona among women ages 15 to 44, compared with the absence of restrictions. This represents an average annual loss of income of $9,564 for Arizona individuals and families and a $3.4 billion dollar loss to the state GDP, based on 2022 dollars.

The Grand Canyon Institute also made the case that restrictive abortion laws impact how many students attend Arizona college campuses. Using the results of a 2024 survey by the Lumina Foundation with Gallup, which found:

• 71% say state reproductive healthcare policies impact college choice
• 80% of all current/prospective students prefer states with greater access
• 86% of Democrats and 63% of Republicans prefer states with greater access

Of those surveyed, including both prospective and current college students pursuing certificate, associate and bachelor degrees, 21% say that state reproductive healthcare policies are extremely important to them when deciding where to enroll and only 20% say they would prefer to attend a college with more restricted access.

Also cited in the report is an analysis of the National Survey of Family Growth that found women under 24 with access to abortion were 42% more likely to enroll in college and 72% more likely to earn a degree compared to those without access.

Authors of the report also warn Arizona business leaders they should be concerned about the impact of restrictive abortion policies on the state’s ability to attract and retain talent.

A May 2024 CNBC/Generation Lab survey reveals that younger American workers are ready to leave states with abortion bans and decline job offers in places where such bans are already enforced. The Youth & Money in the USA survey, which polled 1,033 people aged 18 to 34, found that nearly two-thirds, 62%, would “probably not” or “definitely not” live in a state with an abortion ban.

Report Highlights

Restrictive Abortion Laws – Economic Impact on Arizona 

• Arizona stands to lose $3.4 billion dollars under its very restrictive abortion policies
  Arizona Abortion Policy: Doctors can perform abortions up to 15 weeks gestational age. “Gestational age” means the age of the fetus, as calculated from the first day of the patient’s last menstrual period. Arizona law does not have exceptions for rape or incest.
• There are 1.38 million Arizonan women ages 15 to 44 who are directly affected by reproductive health policies
• When access to abortion is restricted the financial costs to individuals and families are felt disproportionately by those with lower incomes
• The Association of American Medical Colleges reported an 18.3% decrease in applications for medical residencies in the state from 2023-2024. Only Alabama and Mississippi reported larger declines.
• Arizona ranks 44th in state health system performance for women’s health and reproductive care, in the bottom tier of the nation.
• Women who become pregnant before age 24 who have access to abortion are more likely to enter college (42% more likely) and to complete a college degree (72% more likely) compared to those without such access.