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Does problem drinking affect employment? Evidence from England

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Author Info

  • Ziggy MacDonald

    (Department of Economics, University of Leicester, UK)

  • Michael A. Shields

    (Department of Economics, University of Melbourne, Australia)

Abstract

In this paper, we use data from the Health Survey of England to show that problem drinking is negatively and significantly associated with the probability of being in work, once the endogenous relationship between these outcomes is accounted for. Being a problem drinker leads to a substantial reduction in the probability of working by between 7 and 31%, the former figure being roughly equivalent to the positive effect of having a degree relative to no qualifications in our data. This finding is robust to a variety of identifying restrictions and definitions of problem drinking. Moreover, we find that problem drinking defined by the observed psychological and physical symptoms of alcohol is an important predictor of employment, and allows for the fact that individuals differ in their tolerance or susceptibility to alcohol. Our results suggest that there may be important labour market benefits from public health policies aimed at the prevention and treatment of problem drinking. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.816
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 13 (2004)
Issue (Month): 2 ()
Pages: 139-155

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Handle: RePEc:wly:hlthec:v:13:y:2004:i:2:p:139-155

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References

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  1. Vivian Hamilton & Barton H. Hamilton, 1997. "Alcohol and Earnings: Does Drinking Yield a Wage Premium," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 135-51, February.
  2. Jeffrey DeSimone, 1999. "Illegal Drug Use and Labor Supply," Working Papers 9906, East Carolina University, Department of Economics.
  3. Dhaval Dave & Robert Kaestner, 2001. "Alcohol Taxes and Labor Market Outcomes," NBER Working Papers 8562, National Bureau of Economic Research, Inc.
  4. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, vol. 15(4), pages 409-434, August.
  5. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
  6. MacDonald, Ziggy & Pudney, Stephen, 2000. "Illicit drug use, unemployment, and occupational attainment," Journal of Health Economics, Elsevier, vol. 19(6), pages 1089-1115, November.
  7. Barrett, Garry F, 2002. "The Effect of Alcohol Consumption on Earnings," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 79-96, March.
  8. Simon M. Burgess & Carol Propper, 1998. "Early health-related behaviours and their impact on later life chances: evidence from the US," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 381-399.
  9. Weiwei Feng & Wei Zhou & J.S. Butler & Brenda M. Booth & Michael T. French, 2001. "The impact of problem drinking on employment," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 509-521.
  10. Mullahy, John & Sindelar, Jody L, 1991. "Gender Differences in Labor Market Effects of Alcoholism," American Economic Review, American Economic Association, vol. 81(2), pages 161-65, May.
  11. Zarkin, Gary A. & French, Michael T. & Mroz, Thomas & Bray, Jeremy W., 1998. "Alcohol use and wages: New results from the national household survey on drug abuse," Journal of Health Economics, Elsevier, vol. 17(1), pages 53-68, January.
  12. Ziggy MacDonald & Michael Shields, . "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Department of Economics, University of Leicester.
  13. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
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Citations

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Cited by:
  1. Pinka Chatterji & Margarita Alegria & David Takeuchi, 2008. "Psychiatric Disorders and Labor Market Outcomes: Evidence from the National Comorbidity Survey - Replication," NBER Working Papers 14404, National Bureau of Economic Research, Inc.
  2. Lindo, Jason M. & Swensen, Isaac D. & Waddell, Glen R., 2011. "Alcohol and Student Performance: Estimating the Effect of Legal Access," IZA Discussion Papers 5525, Institute for the Study of Labor (IZA).
  3. Nicolas R. Ziebarth & Markus M. Grabka, 2008. "In Vino Pecunia?: The Association between Beverage-Specific Drinking Behavior and Wages," Discussion Papers of DIW Berlin 779, DIW Berlin, German Institute for Economic Research.
  4. Ana I. Balsa & Michael T. French, 2010. "Alcohol use and the labor market in Uruguay," Health Economics, John Wiley & Sons, Ltd., vol. 19(7), pages 833-854.
  5. 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.
  6. Rainer Winkelmann, 2011. "Copula bivariate probit models: with an application to medical expenditures," ECON - Working Papers 029, Department of Economics - University of Zurich.
  7. 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.
  8. Ziggy MacDonald, 2002. "The Employment Prospects of Scottish and English Drug Abusers," Discussion Papers in Economics 02/2, Department of Economics, University of Leicester.
  9. Morris, Stephen, 2007. "The impact of obesity on employment," Labour Economics, Elsevier, vol. 14(3), pages 413-433, June.
  10. 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.
  11. 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.
  12. 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.
  13. Tinna Asgeirsdottir & Kerry McGeary, 2009. "Alcohol and labor supply: the case of Iceland," The European Journal of Health Economics, Springer, vol. 10(4), pages 455-465, October.
  14. Michael T. French & Johanna C. Maclean, 2006. "Underage alcohol use, delinquency, and criminal activity," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1261-1281.
  15. Haucap, Justus & Herr, Annika & Frank, Björn, 2011. "In vino veritas: Theory and evidence on social drinking," DICE Discussion Papers 37, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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