IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v15y1996i4p409-434.html
   My bibliography  Save this article

Employment, unemployment, and problem drinking

Author

Listed:
  • Mullahy, John
  • Sindelar, Jody

Abstract

The misuse of alcoholic beverages ('problem drinking') has been demonstrated to result in enormous economic costs; most of these costs have been shown to be reduced productivity in the labor market. The purpose of this paper is to present sound structural estimates of the relationship between various measures of problem drinking and of employment and unemployment. The sample of approximately 15,000 observations is drawn from the 1988 Alcohol Survey of the National Health Interview Survey, the first dataset that enables nationally- representative estimates of alcohol abuse and dependence consistent with generally accepted medical criteria. The structural estimates of the effects of problem drinking on employment and labor market participation are obtained using methods proposed by Amemiya and by Heckman and MaCurdy. For our sample of males ages 25 to 59, we find that using the instrumental variable approach suggests that the negative impact of problem drinking on employment is even greater than that estimated using the OLS approach. Interestingly, the IV estimates on the samples of females change the sign from a positive impact of problem drinking on employment to a negative impact. Thus although the conclusions drawn from raw data comparisons and OLS regressions differ by gender, the IV estimates are very similar for men and women. For women, the unobserved heterogeneity masks the negative impact of problem drinking on employment when using OLS estimation methods.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, vol. 15(4), pages 409-434, August.
  • Handle: RePEc:eee:jhecon:v:15:y:1996:i:4:p:409-434
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-6296(96)00489-4
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, pages 1063-1093.
    2. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    3. Jerry A. Hausman & David A. Wise, 1985. "Technical Problems in Social Experimentation: Cost versus Ease of Analysis," NBER Chapters,in: Social Experimentation, pages 187-220 National Bureau of Economic Research, Inc.
    4. Nelson, Charles R & Startz, Richard, 1990. "The Distribution of the Instrumental Variables Estimator and Its t-Ratio When the Instrument Is a Poor One," The Journal of Business, University of Chicago Press, vol. 63(1), pages 125-140, January.
    5. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, pages 409-434.
    6. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, pages 411-429.
    7. Michael Grossman, 1989. "Health Benefits of Increases in Alcohol and Cigarette Taxes," NBER Working Papers 3082, National Bureau of Economic Research, Inc.
    8. Robert Moffitt, 1991. "Program Evaluation With Nonexperimental Data," Evaluation Review, , pages 291-314.
    9. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    10. James J. Heckman & Thomas E. MaCurdy, 1985. "A Simultaneous Equations Linear Probability Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(1), pages 28-37, February.
    11. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, pages 319-344.
    12. Lee Benham & Alexandra Benham, 1982. "Employment, Earnings, and Psychiatric Diagnosis," NBER Chapters,in: Economic Aspects of Health, pages 203-220 National Bureau of Economic Research, Inc.
    13. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
    14. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
    15. Suen, Wing & Mo, Pak Hung, 1994. "Simple Analytics of Productive Consumption," Journal of Political Economy, University of Chicago Press, pages 372-383.
    16. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September.
    17. White, Halbert, 1982. "Instrumental Variables Regression with Independent Observations," Econometrica, Econometric Society, vol. 50(2), pages 483-499, March.
    18. 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 223-255, March-Apr.
    19. Ruhm, Christopher J., 1995. "Economic conditions and alcohol problems," Journal of Health Economics, Elsevier, pages 583-603.
    20. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
    21. Mullahy, John & Sindelar, Jody L, 1994. "Do Drinkers Know When to Say When? An Empirical Analysis of Drunk Driving," Economic Inquiry, Western Economic Association International, vol. 32(3), pages 383-394, July.
    22. Ruhm, Christopher J., 1995. "Economic conditions and alcohol problems," Journal of Health Economics, Elsevier, pages 583-603.
    23. Mullahy, John & Sindelar, Jody L, 1993. "Alcoholism, Work, and Income," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 494-520, July.
    24. Mullahy, John & Sindelar, Jody L, 1991. "Gender Differences in Labor Market Effects of Alcoholism," American Economic Review, American Economic Association, pages 161-165.
    25. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, pages 211-222.
    26. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, pages 409-434.
    27. Henry Saffer & Michael Grossman, 1986. "Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities," NBER Working Papers 1914, National Bureau of Economic Research, Inc.
    28. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:15:y:1996:i:4:p:409-434. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.