Is there a wage bonus from drinking? Unobserved heterogeneity examined
While the result that drinkers earn more than abstainers has been remarkably persistent, only one paper in the literature on drinking and earnings has been written where individual fixed effects are included. This study improves the current literature by utilizing a much longer panel and focuses on the low end of drinking while controlling for unobserved heterogeneity with the inclusion of individual specific effects. It is found that while OLS specifications yield a positive significant coefficient on current drinking, even when a rich set of covariates is controlled for, including individual fixed effects renders the coefficient statistically insignificant.
Volume (Year): 36 (2004)
Issue (Month): 20 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
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.:
- French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
- Griliches, Zvi & Hausman, Jerry A., 1986.
"Errors in variables in panel data,"
Journal of Econometrics,
Elsevier, vol. 31(1), pages 93-118, February.
- Ziggy MacDonald & Michael Shields, "undated". "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Department of Economics, University of Leicester.
- Christopher J. Ruhm & William E. Black, 2001.
"Does Drinking Really Decrease in Bad Times?,"
NBER Working Papers
8511, National Bureau of Economic Research, Inc.
- Dhaval Dave & Robert Kaestner, 2001.
"Alcohol Taxes and Labor Market Outcomes,"
NBER Working Papers
8562, National Bureau of Economic Research, Inc.
- David Neumark & Sanders Korenman, 1988.
"Does marriage really make men more productive?,"
Finance and Economics Discussion Series
29, Board of Governors of the Federal Reserve System (U.S.).
- 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 135-151, February.
- Zarkin, Gary A. & French, Michael T. & Mroz, Thomas & Bray, Jeremy W., 1998. "Alcohol use and wages: New results from the national household survey on drug abuse," Journal of Health Economics, Elsevier, vol. 17(1), pages 53-68, January.
- Joshua Angrist & Alan Krueger, 1998.
"Empirical Strategies in Labor Economics,"
98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2299-2315. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.