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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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Cited by:
  1. Scott Adams & Chad Cotti & Nathan Tefft, 2013. "Seatbelt Use Following Stricter Drunk Driving Regulations," Working Papers 22, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  2. Chad Cotti & Richard A. Dunn & Nathan Tefft, 2013. "The Dow is Killing Me: Risky Health Behaviors and the Stock Market," Working Papers 20, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  3. Colin Green & John Heywood & Maria Navarro Paniagua, 2013. "Did liberalising English and Welsh bar hours cause traffic accidents?," Working Papers 33996659, Lancaster University Management School, Economics Department.

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