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The Impact of Alcohol Consumption and Marijuana Use on High School Graduation

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  • Tetsuji Yamada
  • Michael Kendix
  • Tadashi Yamada

Abstract

In this study we use data from the National Longitudinal Survey of Youth (NLSY). We estimate the relationship between high school graduation, and alcohol and marijuana use among the sample of high school students. We also estimate these students' demand determinants for each of these substances. Our results show that there are significant adverse effects of alcohol and marijuana use on high school graduation. In addition, we find that beer taxes, minimum drinking age laws and marijuana decriminalization have a significant impact on the demand for these substances. Our findings have important policy implications. We find that a ten percent increase in beer tax, reduces alcohol consumption among high school students, which in turn raises the probability of high school graduation by about 3.7 percent. Further, a ten percent increase in liquor prices, raises the probability of high school graduation by 6.6 to 8.2 percent. Raising the minimum drinking age for liquor also reduces liquor and wine consumption, and consequently, improves the probability of high school graduation.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4497.

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Date of creation: Oct 1993
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Publication status: published as Yamada, Tetsuji, Michael Kendix, and Tadashi Yamada. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation." Health Economics 5, 1 (January-February 1996): 77-92.
Handle: RePEc:nbr:nberwo:4497

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  1. Adit Laixuthai & Frank J. Chaloupka, 1993. "Youth Alcohol Use and Public Policy," NBER Working Papers 4278, National Bureau of Economic Research, Inc.
  2. Frank J. Chaloupka & Adit Laixuthai, 1997. "Do Youths Substitute Alcohol and Marijuana? Some Econometric Evidence," Eastern Economic Journal, Eastern Economic Association, vol. 23(3), pages 253-276, Summer.
  3. John DiNardo & Thomas Lemieux, 1992. "Alcohol, Marijuana, and American Youth: The Unintended Effects of Government Regulation," NBER Working Papers 4212, National Bureau of Economic Research, Inc.
  4. Manski, C.F. & Sandefur, G.D. & Mclanahan, S. & Powers, D., 1990. "Alternative Estimates Of The Effect Of Family Stucture During Adolescence On Hight School Graduation," Working papers 90-31, Wisconsin Madison - Social Systems.
  5. 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, Cornell University, ILR School, vol. 45(3), pages 435-451, April.
  6. Coate, Douglas & Grossman, Michael, 1988. "Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 145-71, April.
  7. Saffer, Henry, 1991. "Alcohol advertising bans and alcohol abuse: An international perspective," Journal of Health Economics, Elsevier, vol. 10(1), pages 65-79, May.
  8. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-41, May.
  9. Michael Grossman, 1990. "Health Benefits of Increases in Alcohol and Cigarette Taxes," NBER Working Papers 3082, National Bureau of Economic Research, Inc.
  10. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, vol. 12(4), pages 411-429, December.
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