Unintended pregnancies resulting in induced abortion are occasionally associated with poor psychological well-being. In the literature, this is attributed to either (1) the consequences of abortion, (2) the consequences of unintended pregnancy, or (3) specific selection processes. This longitudinal study addresses these explanations based on data from the German family panel “pairfam” (n = 3,604 women). It compares changes in life satisfaction among different groups of women: Those who had an abortion, those who had a live birth, and those who were not pregnant. A matching procedure ensures the comparability of the groups. The results show that women reported temporarily lower life satisfaction immediately after abortion than similar women following live birth or in absence of pregnancy, while no significant group differences were found in the long run. However, abortion is preceded by significantly lower pre-event life satisfaction than live birth or absence of pregnancy. Persistent poor well-being should therefore primarily be considered a selection criterion for abortions resulting from unintended pregnancies rather than as their consequence.