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

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  • Ana I. Balsa

Abstract

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.

Suggested Citation

  • Ana I. Balsa, 2008. "Parental Problem-drinking and Adult Children’s Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 454-486.
  • Handle: RePEc:uwp:jhriss:v:43:y:2008:i:2:p:454-486
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    References listed on IDEAS

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    1. Michael T. French & Johanna C. Maclean, 2006. "Underage alcohol use, delinquency, and criminal activity," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1261-1281.
    2. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc.
    3. Pinka Chatterji & Jeff DeSimone, 2005. "Adolescent Drinking and High School Dropout," NBER Working Papers 11337, National Bureau of Economic Research, Inc.
    4. Alison Snow Jones & Deborah J. Miller & David S. Salkever, 1999. "Parental use of alcohol and children's behavioural health: a household production analysis," Health Economics, John Wiley & Sons, Ltd., vol. 8(8), pages 661-683.
    5. Weiwei Feng & Wei Zhou & J.S. Butler & Brenda M. Booth & Michael T. French, 2001. "The impact of problem drinking on employment," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 509-521.
    6. 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.
    7. 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..
    8. repec:mes:jeciss:v:32:y:1998:i:4:p:1079-1105 is not listed on IDEAS
    9. 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.
    10. 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, April.
    11. 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.
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    Cited by:

    1. Huong Thu Le & Ha Trong Nguyen, 2015. "Parental health and children’s cognitive and non-cognitive development: New evidence from the Longitudinal Survey of Australian Children," Bankwest Curtin Economics Centre Working Paper series WP1506, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    2. Maclean, Johanna Catherine & Popovici, Ioana & French, Michael T., 2016. "Are natural disasters in early childhood associated with mental health and substance use disorders as an adult?," Social Science & Medicine, Elsevier, vol. 151(C), pages 78-91.
    3. Andrea M. Mühlenweg & Franz G. Westermaier & Brant Morefield, 2016. "Parental health and child behavior: evidence from parental health shocks," Review of Economics of the Household, Springer, vol. 14(3), pages 577-598, September.
    4. Jonathan H. Cantor & Brady P. Horn & Johanna Catherine Maclean, 2013. "Recessions and Admissions to Substance Abuse Treatment," NBER Working Papers 19115, National Bureau of Economic Research, Inc.
    5. Le, Huong & Nguyen, Ha, 2015. "Parental health and children’s cognitive and non-cognitive development: New evidence from the Longitudinal Survey of Australian Children," MPRA Paper 67590, University Library of Munich, Germany.
    6. Maclean, Johanna Catherine & French, Michael T., 2014. "Personality disorders, alcohol use, and alcohol misuse," Social Science & Medicine, Elsevier, vol. 120(C), pages 286-300.

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