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The impact of problem drinking on employment

Author

Listed:
  • Weiwei Feng

    (Corning Incorporated, Corning, NY, USA)

  • Wei Zhou

    (Corning Incorporated, Corning, NY, USA)

  • J.S. Butler

    (Department of Policy Analysis and Management, Cornell University, USA)

  • Brenda M. Booth

    (Department of Psychiatry, University of Arkansas for Medical Sciences (UAMS), USA)

  • Michael T. French

    (Health Services Research Center, Department of Epidemiology and Public Health and Department of Economics, University of Miami, USA)

Abstract

Social cost studies report that alcohol use and misuse impose a great economic burden on society, and over half of the total economic costs are estimated to be due to the loss of work productivity. Controversy remains, however, as to the magnitude and direction of the effects of alcohol consumption on productivity. Furthermore, most of the studies have looked at the relationship between problem drinking and wages. This paper investigates the impact of problem drinking on employment by analysing a random sample of men and women of prime working age from six Southern states in the US (Alabama, Arkansas, Georgia, Louisiana, Mississippi and Tennessee). The data set contains 4898 females and 3224 males, with information on both employment and problem drinking. To eliminate the bias that may result from single-equation estimation, we used a bivariate probit model to control for possible correlation in the unobservable factors that affect both problem drinking and employment. We find no significant negative association between problem drinking and employment for both men and women, controlling for other covariates. The findings are consistent with other research and highlight several methodological issues. Furthermore, the study suggests that estimates of the costs of problem drinking may be overstated owing to misleading labour supply relationships. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:hlthec:v:10:y:2001:i:6:p:509-521
    DOI: 10.1002/hec.611
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    References listed on IDEAS

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    1. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self-Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 109-121, July.
    2. 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.
    3. Ribar, David C, 1994. "Teenage Fertility and High School Completion," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 413-424, August.
    4. Kenneth Bollen & David Guilkey & Thomas Mroz, 1995. "Binary outcomes and endogenous explanatory variables: Tests and solutions with an application to the demand for contraceptive use in tunisia," Demography, Springer;Population Association of America (PAA), vol. 32(1), pages 111-131, February.
    5. Mullahy, John & Sindelar, Jody L, 1991. "Gender Differences in Labor Market Effects of Alcoholism," American Economic Review, American Economic Association, vol. 81(2), pages 161-165, May.
    6. 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.
    7. Hugh R. Waters, 1999. "Measuring the impact of health insurance with a correction for selection bias-a case study of Ecuador," Health Economics, John Wiley & Sons, Ltd., vol. 8(5), pages 473-483.
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    Citations

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    Cited by:

    1. Ziebarth, Nicolas R. & Grabka, Markus M., 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 219-244.
    2. 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.
    3. Sabia, Joseph J. & Nguyen, Thanh Tam, 2016. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," IZA Discussion Papers 9831, Institute for the Study of Labor (IZA).
    4. Ana I. Balsa & Michael T. French, 2010. "Alcohol use and the labor market in Uruguay," Health Economics, John Wiley & Sons, Ltd., vol. 19(7), pages 833-854.
    5. Tinna Laufey Ásgeirsdóttir & Harpa H. Berndsen & Bryndís Þ. Guðmundsdóttir & Bryndís A. Gunnarsdóttir & Hugrún J. Halldórsdóttir, 2016. "The effect of obesity, alcohol misuse and smoking on employment and hours worked: evidence from the Icelandic economic collapse," Review of Economics of the Household, Springer, vol. 14(2), pages 313-335, June.
    6. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155.
    7. Ioana Popovici & Michael T. French, 2013. "Does Unemployment Lead to Greater Alcohol Consumption?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(2), pages 444-466, April.
    8. Ettner, Susan L. & French, Michael T. & Popovici, Ioana, 2010. "Heavy drinking and health promotion activities," Social Science & Medicine, Elsevier, vol. 71(1), pages 134-142, July.
    9. Tinna Asgeirsdottir & Kerry McGeary, 2009. "Alcohol and labor supply: the case of Iceland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(4), pages 455-465, October.
    10. Patrick Keller, 2016. "Alcohol: Does It Make You Successful? A Longitudinal Analysis," SOEPpapers on Multidisciplinary Panel Data Research 830, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Pierre Kébreau Alexandre & Michael T. French, 2004. "Further Evidence on the Labor Market Effects of Addiction: Chronic Drug Use and Employment in Metropolitan Miami," Contemporary Economic Policy, Western Economic Association International, vol. 22(3), pages 382-393, July.
    12. Gianna Giannelli & Lucia Mangiavacchi & Luca Piccoli, 2013. "Do parents drink their children’s welfare? Intra-household allocation of time between market labour, domestic work and child care in Russia," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.

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