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Teen Drinking and Educational Attainment: Evidence from Two-Sample Instrumental Variables Estimates

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  • Thomas S. Dee

    (Swarthmore College and National Bureau of Economic Research)

  • William N. Evans

    (University of Maryland, Project Hope, and National Bureau of Economic Research)

Abstract

This study examines the effects of teen alcohol use and availability on educational attainment. We demonstrate that teens who faced a lower minimum legal drinking age (MLDA) were substantially more likely to drink. However, we find that changes in MLDA had small and statistically insignificant effects on educational attainment. Using matched cohorts from two data sets, we also report two-sample instrumental variables estimates of the effect of teen drinking on educational attainment. These estimates are smaller than the corresponding ordinary least squares estimates and statistically insignificant, indicating that teen drinking does not have an independent effect on educational attainment.

Suggested Citation

  • Thomas S. Dee & William N. Evans, 2003. "Teen Drinking and Educational Attainment: Evidence from Two-Sample Instrumental Variables Estimates," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 178-209, January.
  • Handle: RePEc:ucp:jlabec:v:21:y:2003:i:1:p:178-209
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    References listed on IDEAS

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    1. Cook, Philip J. & Moore, Michael J., 1993. "Drinking and schooling," Journal of Health Economics, Elsevier, vol. 12(4), pages 411-429, December.
    2. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    3. Chesson, Harrell & Harrison, Paul & Kassler, William J, 2000. "Sex Under the Influence: The Effect of Alcohol Policy on Sexually Transmitted Disease Rates in the United States," Journal of Law and Economics, University of Chicago Press, vol. 43(1), pages 215-238, April.
    4. 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 145-171, April.
    5. Thomas S. Dee & William N. Evans, 1997. "Teen Drinking and Education Attainment: Evidence From Two-Sample Instrumental Variables (TSIV) Estimates," NBER Working Papers 6082, National Bureau of Economic Research, Inc.
    6. Dee, Thomas S., 1999. "The complementarity of teen smoking and drinking," Journal of Health Economics, Elsevier, vol. 18(6), pages 769-793, December.
    7. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    8. Michael Grossman & Frank J. Chaloupka & Henry Saffer & Adit Laixuthai, 1993. "Effects of Alcohol Price Policy on Youth," NBER Working Papers 4385, National Bureau of Economic Research, Inc.
    9. Beverly Duncan, 1965. "Dropouts and the Unemployed," Journal of Political Economy, University of Chicago Press, vol. 73, pages 121-121.
    10. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    11. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    12. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
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