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Causal effects of alcoholism on earnings: estimates from the NLSY

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  • Alison Snow Jones

    (Department of Social Sciences and Health Policy, Wake Forest University School of Medicine, NC, USA)

  • David W. Richmond

    (Department of Social Sciences and Health Policy, Wake Forest University School of Medicine, NC, USA)

Abstract

Propensity score matching is used to investigate the causal relationship between alcoholism and earnings in a young cohort of males and females drawn from the 1989 and 1994 National Longitudinal Survey of Youth (NLSY) in order to investigate productivity losses attributed to alcoholism and to quantify these effects. Results suggest that there are productivity losses attributable to alcoholism; that they become more pronounced over the life cycle; and that they differ between men and women. Ways in which estimates from propensity score matching may or may not improve on instrumental variables estimates are discussed. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Alison Snow Jones & David W. Richmond, 2006. "Causal effects of alcoholism on earnings: estimates from the NLSY," Health Economics, John Wiley & Sons, Ltd., vol. 15(8), pages 849-871.
  • Handle: RePEc:wly:hlthec:v:15:y:2006:i:8:p:849-871 DOI: 10.1002/hec.1109
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    References listed on IDEAS

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    1. Astrid Grasdal, 2001. "The performance of sample selection estimators to control for attrition bias," Health Economics, John Wiley & Sons, Ltd., vol. 10(5), pages 385-398.
    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. Petra E. Todd & Jeffrey A. Smith, 2001. "Reconciling Conflicting Evidence on the Performance of Propensity-Score Matching Methods," American Economic Review, American Economic Association, vol. 91(2), pages 112-118, May.
    4. Dave, Dhaval & Kaestner, Robert, 2002. "Alcohol taxes and labor market outcomes," Journal of Health Economics, Elsevier, vol. 21(3), pages 357-371, May.
    5. 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.
    6. 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.
    7. Donald S. Kenkel & Ping Wang, 1999. "Are Alcoholics in Bad Jobs?," NBER Chapters,in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 251-278 National Bureau of Economic Research, Inc.
    8. 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.
    9. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    10. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
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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. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    3. Justus Haucap & Annika Herr, 2014. "A note on social drinking: In Vino Veritas," European Journal of Law and Economics, Springer, vol. 37(3), pages 381-392, June.
    4. Haucap, Justus & Herr, Annika & Frank, Björn, 2011. "In vino veritas: Theory and evidence on social drinking," DICE Discussion Papers 37, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).

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