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The Effect of Alcohol Consumption on Earnings

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  • Barrett, Garry F

Abstract

The effect of alcohol consumption on the earnings of full-time male workers is analysed using the Australian National Health Survey 1989-90. A multinomial logit choice model is used to explain workers' choice of drinking status and to correct for selection bias in the earnings equation estimation. It is found that moderate drinking leads to a significant earnings premium relative to abstention and heavy drinking. The results are consistent with moderate drinking improving individual's health and hence productivity and earnings. Copyright 2002 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 78 (2002)
Issue (Month): 240 (March)
Pages: 79-96

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Handle: RePEc:bla:ecorec:v:78:y:2002:i:240:p:79-96

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Cited by:
  1. Amy Y.C. Liu, 2001. "Gender wage gap in transistion in Vietnam," International and Development Economics Working Papers idec01-3, International and Development Economics.
  2. Pinka Chatterji & Jeffrey DeSimone, 2006. "High School Alcohol Use and Young Adult Labor Market Outcomes," NBER Working Papers 12529, National Bureau of Economic Research, Inc.
  3. Bruce Headey & Mark Wooden & Gary Marks, 2004. "The Structure and Distribution of Household Wealth in Australia," Melbourne Institute Working Paper Series wp2004n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  4. Preety Srivastava & Xueyan Zhao, 2010. "What Do the Bingers Drink? Microeconometric Evidence on Negative Externatilities of Alcohol Consumption by Beverage Types," Monash Econometrics and Business Statistics Working Papers 1/10, Monash University, Department of Econometrics and Business Statistics.
  5. Marschall, Paul, 2001. "Lernen und Lebensstilwandel in Transformationsökonomien," Wirtschaftswissenschaftliche Diskussionspapiere 07/2001, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
  6. Keng, Shao-Hsun & Huffman, Wallace, 2005. "Binge Drinking and Labor Market Success: A Longitudinal Study on Young People," Staff General Research Papers 12299, Iowa State University, Department of Economics.
  7. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155.
  8. Felicity Barker, 2002. "Consumption Externalities and the Role of Government: The Case of Alcohol," Treasury Working Paper Series 02/25, New Zealand Treasury.
  9. Johansson, Edvard & Alho, Hannu & Kiiskinen, Urpo & Poikolainen, Kari, 2004. "The Association of Alcohol Dependency with Employment Probability: Evidence from population survey Health 2000 in Finland," Discussion Papers 921, The Research Institute of the Finnish Economy.
  10. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
  11. Hirschberg, J. & Lye, J.N., 2000. "Alcohol Consumption, Smoking and Wages," Department of Economics - Working Papers Series 764, The University of Melbourne.
  12. Shao-Hsun Keng & Wallace Huffman, 2007. "Binge drinking and labor market success: a longitudinal study on young people," Journal of Population Economics, Springer, vol. 20(1), pages 35-54, February.
  13. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 2007. "The association of alcohol dependency with employment probability: evidence from the population survey 'Health 2000 in Finland'," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 739-754.
  14. Johansson, Edvard & Alho, Hannu & Kiiskinen, Urpo & Poikolainen, Kari, 2004. "Abstaining from Alcohol and Labour Market Underperformance - Have we forgotten the 'dry' alcoholics?," Discussion Papers 931, The Research Institute of the Finnish Economy.
  15. Lixin Cai, 2007. "Effects of Health on Wages of Australian Men," Melbourne Institute Working Paper Series wp2007n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  16. Pinka Chatterji & Margarita Alegria & Mingshan Lu & David Takeuchi, 2005. "Psychiatric Disorders and Labor Market Outcomes: Evidence from the National Latino and Asian American Study," NBER Working Papers 11893, National Bureau of Economic Research, Inc.
  17. Benjamin J. Stephens, 2010. "The Determinants of Labour Force Status among Indigenous Australians," Economics Discussion / Working Papers 10-11, The University of Western Australia, Department of Economics.
  18. Levy, Amnon, 2002. "A Theory of Chronic Loss, Suffering and Alcoholism," Economics Working Papers wp02-16, School of Economics, University of Wollongong, NSW, Australia.

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