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Parental Problem-drinking and Adult Children’s Labor Market Outcomes

  • Ana I. Balsa

Current estimates of the societal costs of alcoholism do not consider the impact of parental drinking on children. This paper analyzes the consequences of parental problem-drinking on children’s labor market outcomes in adulthood. Using the NLSY79, I show that having a problem-drinking parent is associated with longer periods out of the labor force, lengthier unemployment, and lower wages, in particular for male respondents. Increased probabilities of experiencing health problems and abusing alcohol are speculative forces behind these effects. While causality cannot be determined due to imprecise IV estimates, the paper calls for further investigation of the intergeneration costs of problem-drinking.

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File URL: http://jhr.uwpress.org/cgi/reprint/43/2/454
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 43 (2008)
Issue (Month): 2 ()
Pages: 454-486

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Handle: RePEc:uwp:jhriss:v:43:y:2008:i:2:p:454-486
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. Pinka Chatterji & Jeff DeSimone, 2005. "Adolescent Drinking and High School Dropout," NBER Working Papers 11337, National Bureau of Economic Research, Inc.
  2. SF Koch & DC Ribar, 2001. "A Siblings Analysis Of The Effects Of Alcohol Consumption Onset On Educational Attainment," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 162-174, 04.
  3. 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.
  4. Gabriel A. Picone & Frank Sloan & Justin G. Trogdon, 2004. "The effect of the tobacco settlement and smoking bans on alcohol consumption," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 1063-1080.
  5. Ana I. Balsa & Michael T. French, 2011. "The Impact of Parental Drinking on Children’s Use of Health Care," Documentos de Trabajo/Working Papers 1101, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
  6. Sara Markowitz & John Tauras, 2006. "Even For Teenagers, Money Does Not Grow on Trees: Teenage Substance Use and Budget Constraints," NBER Working Papers 12300, National Bureau of Economic Research, Inc.
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