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Minimum Wages and Alcohol-Related Traffic Fatalities among Teens

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Author Info

  • Scott Adams

    (University of Wisconsin—Milwaukee)

  • McKinley L. Blackburn

    (University of South Carolina)

  • Chad D. Cotti

    (University of Wisconsin—Oshkosh)

Abstract

Using cross-state variation in minimum wages, we observe a positive relationship between the minimum wage and the number of alcohol-related accidents involving teen drivers. A similar effect is not observed when examining accidents among adults. The results are consistent with a positive income elasticity for alcoholic beverages and driving activities among young people, in particular for consumption out of discretionary income accorded by higher minimum wages. Evidence of a sizable impact of beer taxes on alcohol-related accidents among youths suggests that beer taxes are one avenue for policymakers to consider in counteracting this unintended consequence of minimum wages. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00199
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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 94 (2012)
Issue (Month): 3 (August)
Pages: 828-840

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Handle: RePEc:tpr:restat:v:94:y:2012:i:3:p:828-840

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

Related research

Keywords: minimum wage; traffic fatalities; alcohol-related accidents; alcohol; teen drivers;

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