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The Impact of Alcohol Consumption on Occupational Attainment in England

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Author Info
MacDonald, Ziggy (PSERC, Department of Economics, University of Leicester, England)
Shields, Michael A. () (PSERC, Department of Economics, University of Leicester, England and IZA, Bonn)

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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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Publisher 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: 41 pages
Date of creation: Jun 2000
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Handle: RePEc:iza:izadps:dp166

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Related research
Keywords: Alcohol; occupational attainment; endogeneity;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. 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, vol. 43(4-6), pages 889-901, April. [Downloadable!] (restricted)
    Other versions:
  2. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self-Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 109-121, 07. [Downloadable!] (restricted)
  3. Charles A. Register & Donald R. Williams, 1992. "Labor market effects of marijuana and cocaine use among young men," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 45(3), pages 435-451, April.
  4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  5. Colm Harmon & Ian Walker, 1996. "The marginal and average returns to schooling," IFS Working Papers W96/11, Institute for Fiscal Studies.
    Other versions:
  6. Berger, Mark C & Leigh, J Paul, 1988. "The Effect of Alcohol Use on Wages," Applied Economics, Taylor and Francis Journals, vol. 20(10), pages 1343-51, October.
  7. 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, vol. 5(4), pages 385-409, December. [Downloadable!] (restricted)
  8. Thomas, D. & Strauss, J., 1997. "Health and Wages: Evidence on Men and Women in Urban Brazil," Papers 97-05, RAND - Reprint Series.
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  9. Robert Kaestner, 1990. "The Effect of Illicit Drug Use on the Wages of Young Adults," NBER Working Papers 3535, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. 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. [Downloadable!] (restricted)
  11. Harper, Barry & Haq, Mohammad, 1997. "Occupational Attainment of Men in Britain," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 638-50, October. [Downloadable!] (restricted)
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  13. Harmon, Colm & Walker, Ian, 1999. "The marginal and average returns to schooling in the UK," European Economic Review, Elsevier, vol. 43(4-6), pages 879-887, April. [Downloadable!] (restricted)
  14. Z. MacDonald & S. Pudney, 2000. "Analysing drug abuse with British Crime Survey data: modelling and questionnaire design issues," Journal Of The Royal Statistical Society Series C, Royal Statistical Society, vol. 49(1), pages 95-117. [Downloadable!] (restricted)
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  15. Nickell, Stephen, 1982. "The Determinants of Occupational Success in Britain," Review of Economic Studies, Blackwell Publishing, vol. 49(1), pages 43-53, January. [Downloadable!] (restricted)
  16. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. 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, vol. 54(3), pages 679-85, May. [Downloadable!] (restricted)
  18. 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.
  19. MacDonald, Ziggy & Pudney, Stephen, 2000. "Illicit drug use, unemployment, and occupational attainment," Journal of Health Economics, Elsevier, vol. 19(6), pages 1089-1115, November. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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). [Downloadable!]
  2. 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, vol. 35(1), pages 45-69, February. [Downloadable!] (restricted)
  3. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 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. [Downloadable!]
  4. Nicolas Ziebarth & Markus Grabka, 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," Journal of Labor Research, Springer, vol. 30(3), pages 219-244, September. [Downloadable!] (restricted)
    Other versions:
  5. 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). [Downloadable!]
  6. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 2004. "Abstaining from Alcohol and Labour Market Underperformance - Have we forgotten the `dry` alcoholics?," Discussion Papers 931, The Research Institute of the Finnish Economy. [Downloadable!]
  7. 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). [Downloadable!]
  8. Sijbren Cnossen, 2007. "Alcohol taxation and regulation in the European Union," International Tax and Public Finance, Springer, vol. 14(6), pages 699-732, December. [Downloadable!] (restricted)
  9. Andersson, Fredrik & A. Konrad, Kai, 2001. "Globalization and Human Capital Formation," IZA Discussion Papers 245, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  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. [Downloadable!] (restricted)
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