Cross-border health and productivity effects of alcohol policies
AbstractThis paper studies the cross-border health and productivity effects of alcohol taxes. We estimate the effect of a large cut in the Finnish alcohol tax on mortality, alcohol related illnesses and work absenteeism in Sweden. This tax cut led to large differences in the prices of alcoholic beverages between these two countries and to a considerable increase in cross-border shopping. The effect is identified using differences-in-differences strategy where changes in these outcomes in regions near the Finnish border are compared to changes in other parts of northern Sweden. We use register data where micro level data on deaths, hospitalisations and absenteeism is merged to population-wide micro data on demographics and labour market outcomes. Our results on the effect of the Finnish tax cut on mortality and alcohol-related hospitalisations in Sweden are very imprecise. However,we find that workplace absenteeism increased by 5% for males and by 13% for females near the Finnish border as a result of the tax cut.
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Bibliographic InfoPaper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2012:10.
Length: 27 pages
Date of creation: 02 May 2012
Date of revision:
Publication status: Forthcoming as Johansson, Per, Tuomas Pekkarinen and Jouko Verho, 'Cross-border health and productivity effects of alcohol policies' in Journal of Health Economics, 2014, pages 126-136.
Cross-border shopping; Alcohol taxes; Health effects of alcohol;
Other versions of this item:
- Johansson, Per & Pekkarinen, Tuomas & Verho, Jouko, 2012. "Cross-Border Health and Productivity Effects of Alcohol Policies," IZA Discussion Papers 6389, Institute for the Study of Labor (IZA).
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
- NEP-EUR-2012-05-29 (Microeconomic European Issues)
- NEP-HEA-2012-05-29 (Health Economics)
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