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Binge drinking and labor market success: a longitudinal study on young people
Abstract This paper presents a two-equation model of joint outcomes on an individual’s decision to binge drink and on his/her annual labor market earnings. The primary data source is the 1979 cohort of the National Longitudinal Survey of Youth (NLSY79), 1979–1994. We show that binge drinking behavior is quite alcohol-price responsive and is a rational addiction. A new result is that an individual’s decision to binge drink has a statistically significant negative effect on his/her earnings. Furthermore, we conducted simulations of the short-run and long-run impacts of increasing the alcohol price. They showed that the tendency for an individual to binge drink heavily is reduced significantly, and the reduction is greater in the long-run than short-run simulation. Also, an individual's annual earnings were increased. However, in the structural model, an individual’s earnings have no significant effect on his/her tendency to engage in binge drinking. Our results contradict earlier findings from cross-section evidence that showed increased alcohol consumption raised an individual’s earnings or wages.
Binge drinking and labor market success: a longitudinal study on young people
Abstract This paper presents a two-equation model of joint outcomes on an individual’s decision to binge drink and on his/her annual labor market earnings. The primary data source is the 1979 cohort of the National Longitudinal Survey of Youth (NLSY79), 1979–1994. We show that binge drinking behavior is quite alcohol-price responsive and is a rational addiction. A new result is that an individual’s decision to binge drink has a statistically significant negative effect on his/her earnings. Furthermore, we conducted simulations of the short-run and long-run impacts of increasing the alcohol price. They showed that the tendency for an individual to binge drink heavily is reduced significantly, and the reduction is greater in the long-run than short-run simulation. Also, an individual's annual earnings were increased. However, in the structural model, an individual’s earnings have no significant effect on his/her tendency to engage in binge drinking. Our results contradict earlier findings from cross-section evidence that showed increased alcohol consumption raised an individual’s earnings or wages.
Binge drinking and labor market success: a longitudinal study on young people
Keng, Shao-Hsun (author) / Huffman, Wallace E. (author)
2006
Article (Journal)
Electronic Resource
English
RVK:
ELIB39
/
ELIB45
Local classification FBW:
oek 2608
BKL:
74.80
Demographie
/
83.31$jWirtschaftswachstum
/
74.80$jDemographie$XGeographie
/
83.31
Wirtschaftswachstum
Binge drinking and labor market success: a longitudinal study on young people
| Online Contents | 2005
Binge drinking and labor market success: a longitudinal study on young people
| Online Contents | 2005
Binge drinking and labor market success: a longitudinal study on young people
| Online Contents | 2006
Erratum to: Binge drinking and labor market success: a longitudinal study on young people
| Online Contents | 2010
Erratum to: Binge drinking and labor market success: a longitudinal study on young people
| Online Contents | 2010