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Wage Effects of Drinking in Australia

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  • Yew Liang Lee
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    Abstract

    This article analyses the wage effects of drinking using the Australian Twin Registry data. A multinomial logit framework is employed to explain the allocation of workers across various drinking states, and to correct for selection bias in the wage equations. It is found that there is a significant positive wage premium for moderate drinking. A favourable family background (during childhood) is positively related to the measure of moderate drinking. Greater genetic endowments are also associated with moderate drinking. Copyright 2003 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/1467-8462.00286
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    Bibliographic Info

    Article provided by The University of Melbourne, Melbourne Institute of Applied Economic and Social Research in its journal The Australian Economic Review.

    Volume (Year): 36 (2003)
    Issue (Month): 3 ()
    Pages: 265-282

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    Handle: RePEc:bla:ausecr:v:36:y:2003:i:3:p:265-282

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    Cited by:
    1. Miller, Paul & Mulvey, Charles & Martin, Nick, 2006. "The return to schooling: Estimates from a sample of young Australian twins," Labour Economics, Elsevier, vol. 13(5), pages 571-587, October.
    2. Harris, Mark N. & Ramful, Preety & Zhao, Xueyan, 2006. "An ordered generalised extreme value model with application to alcohol consumption in Australia," Journal of Health Economics, Elsevier, vol. 25(4), pages 782-801, July.
    3. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
    4. Chiswick, Barry R. & Miller, Paul W., 2013. "Negative and Positive Assimilation By Prices and By Quantities," IZA Discussion Papers 7389, Institute for the Study of Labor (IZA).

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