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High School Alcohol Use and Young Adult Labor Market Outcomes

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  • Pinka Chatterji
  • Jeffrey DeSimone

Abstract

We estimate the relationship between 10th grade binge drinking in 1990 and labor market outcomes in 2000 among National Educational Longitudinal Survey respondents. For females, adolescent drinking and adult wages are unrelated, and negative employment effects disappear once academic achievement is held constant. For males, negative employment effects and, more strikingly, positive wage effects persist after controlling for achievement as well as background characteristics, educational attainment, and adult binge drinking and family and job characteristics. Accounting for illegal drug use and other problem behaviors in 10th grade eliminates the unemployment effect, but strengthens the wage effect. As the latter is not explicable by the health, income or social capital justifications that are often used for frequently observed positive correlations between adult alcohol use and earnings, we conjecture that binge drinking conveys unobserved social skills that are rewarded by employers.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12529.

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Date of creation: Sep 2006
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Handle: RePEc:nbr:nberwo:12529

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Cited by:
  1. Jason M. Lindo & Isaac D. Swensen & Glen R. Waddell, 2011. "Alcohol and Student Performance: Estimating the Effect of Legal Access," NBER Working Papers, National Bureau of Economic Research, Inc 17637, National Bureau of Economic Research, Inc.
  2. L. Corazzini & A. Filippin & P. Vanin, 2014. "Economic Behavior under Alcohol Influence: An Experiment on Time, Risk, and Social Preferences," Working Papers, Dipartimento Scienze Economiche, Universita' di Bologna wp944, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Donata Bessey & Uschi Backes-Gellner, 2009. "Marijuana Consumption, Educational Outcomes and Labor Market Success: Evidence from Switzerland," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0043, University of Zurich, Institute for Strategy and Business Economics (ISU).
  4. Paolo Buonanno & Paolo Vanin, 2007. "Bowling Alone, Drinking Together," "Marco Fanno" Working Papers, Dipartimento di Scienze Economiche "Marco Fanno" 0055, Dipartimento di Scienze Economiche "Marco Fanno".
  5. Eric Crampton & Matt Burgess & Brad Taylor, 2011. "The Cost of Cost Studies," Working Papers in Economics, University of Canterbury, Department of Economics and Finance 11/29, University of Canterbury, Department of Economics and Finance.

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