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The Impact of Alcohol Consumption on Occupational Attainment in England

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Author Info

  • MacDonald, Ziggy

    (University of Leicester)

  • Shields, Michael A.

    ()
    (Monash University)

Abstract

In this study we provide evidence on the effect of alcohol consumption on occupational attainment in England. To do this we use samples of employees from the Health Survey for England between 1992 and 1996. We find that due to the endogenous nature of alcohol consumption, OLS estimates may provide a biased picture of the impact of alcohol consumption on occupational attainment. Using various sets of instrumental variables, we find positive and significant returns to moderate levels of drinking for male and female employees which drop-off rapidly as consumption increases.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 166.

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Length: 42 pages
Date of creation: Jun 2000
Date of revision:
Publication status: published in: Economica, August 2001, 68 (271), 427-453
Handle: RePEc:iza:izadps:dp166

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Keywords: endogeneity; occupational attainment; Alcohol;

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References

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  1. Thomas, Duncan & Strauss, John, 1997. "Health and wages: Evidence on men and women in urban Brazil," Journal of Econometrics, Elsevier, Elsevier, vol. 77(1), pages 159-185, March.
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  3. MacDonald, Ziggy & Pudney, Stephen, 2000. "Illicit drug use, unemployment, and occupational attainment," Journal of Health Economics, Elsevier, Elsevier, vol. 19(6), pages 1089-1115, November.
  4. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, Econometric Society, vol. 54(3), pages 679-85, May.
  5. Zarkin, Gary A. & Mroz, Thomas A. & Bray, Jeremy W. & French, Michael T., 1998. "The relationship between drug use and labor supply for young men," Labour Economics, Elsevier, Elsevier, vol. 5(4), pages 385-409, December.
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  7. Ichino, Andrea & Winter-Ebmer, Rudolf, 1999. "Lower and upper bounds of returns to schooling: An exercise in IV estimation with different instruments," European Economic Review, Elsevier, Elsevier, vol. 43(4-6), pages 889-901, April.
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  15. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self-Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, Western Economic Association International, vol. 12(3), pages 109-121, 07.
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  17. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  18. Ziggy MacDonald & Stephen Pudney, . "Analysing Drug Abuse with British Crime Survey Data: Modelling and Questionnaire Design Issues," Discussion Papers in Public Sector Economics, Department of Economics, University of Leicester 98/11, Department of Economics, University of Leicester.
  19. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
  20. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0136, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. 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, The Research Institute of the Finnish Economy 921, The Research Institute of the Finnish Economy.
  2. Farrell, Lisa & Shields, Michael A., 2001. "Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision," IZA Discussion Papers 388, Institute for the Study of Labor (IZA).
  3. Barnes, Andrew J. & Zimmerman, Frederick J., 2013. "Associations of occupational attributes and excessive drinking," Social Science & Medicine, Elsevier, Elsevier, vol. 92(C), pages 35-42.
  4. Andersson, Frederik & Konrad, Kai A., 2001. "Globalization and human capital formation," Discussion Papers, Research Unit: Market Processes and Governance, Social Science Research Center Berlin (WZB) FS IV 01-01, Social Science Research Center Berlin (WZB).
  5. Sijbren Cnossen, 2007. "Alcohol taxation and regulation in the European Union," International Tax and Public Finance, Springer, Springer, vol. 14(6), pages 699-732, December.
  6. Heineck, Guido & Schwarze, Johannes, 2003. "Substance Use and Earnings: The Case of Smokers in Germany," IZA Discussion Papers 743, Institute for the Study of Labor (IZA).
  7. Sijbren Cnossen, 2006. "Alcohol Taxation and Regulation in the European Union," CESifo Working Paper Series 1821, CESifo Group Munich.
  8. 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.
  9. Ziebarth, Nicolas R. & Grabka, Markus M., 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," EconStor Open Access Articles, ZBW - German National Library of Economics, ZBW - German National Library of Economics, pages 219-244.
  10. Johansson, Edvard & Alho, Hannu & Kiiskinen, Urpo & Poikolainen, Kari, 2004. "Abstaining from Alcohol and Labour Market Underperformance - Have we forgotten the 'dry' alcoholics?," Discussion Papers, The Research Institute of the Finnish Economy 931, The Research Institute of the Finnish Economy.
  11. Justus Haucap & Annika Herr, 2014. "A note on social drinking: In Vino Veritas," European Journal of Law and Economics, Springer, Springer, vol. 37(3), pages 381-392, June.
  12. Vasilios Kosteas, 2012. "The Effect of Exercise on Earnings: Evidence from the NLSY," Journal of Labor Research, Springer, Springer, vol. 33(2), pages 225-250, June.
  13. Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute for the Study of Labor (IZA).
  14. Abdulbaki Bilgic & Wojciech Florkowski, 2009. "The impact of license regulation on the number of recreation trips: is it worth considering?," Journal of Regulatory Economics, Springer, Springer, vol. 35(1), pages 45-69, February.
  15. Harald Tauchmann & Silja Lenz & Till Requate & Christoph Schmidt, 2013. "Tobacco and alcohol: complements or substitutes?," Empirical Economics, Springer, Springer, vol. 45(1), pages 539-566, August.
  16. Morris, Stephen, 2006. "Body mass index and occupational attainment," Journal of Health Economics, Elsevier, Elsevier, vol. 25(2), pages 347-364, March.
  17. Kim, Vitally, 2010. "Level of alcohol consumption and worker’s labor market position. Multivariate probit model approach," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 18(2), pages 53-77.

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