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Alcohol Consumption and Long‐Term Labor Market Outcomes

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  • Petri Böckerman
  • Ari Hyytinen
  • Terhi Maczulskij

Abstract

This paper examines whether alcohol consumption is related to long‐term labor market outcomes. We use twin data for Finnish men and women matched to register‐based individual information on employment and earnings. The twin data allow us to account for the shared environmental and genetic factors. The quantity of alcohol consumption was measured by weekly average consumption using self‐reported data from three surveys (1975, 1981 and 1990). The average of an individual's employment months and earnings were measured in adulthood over the period 1990–2009. The models that account for the shared environmental and genetic factors reveal that former drinkers and heavy drinkers both have almost 20% lower earnings compared with moderate drinkers. On average, former drinkers work annually approx. 1 month less over the 20‐year observation period. These associations are robust to the use of covariates, such as education, pre‐existing health endowment and smoking. Copyright © 2015 John Wiley & Sons, Ltd.

Suggested Citation

  • Petri Böckerman & Ari Hyytinen & Terhi Maczulskij, 2017. "Alcohol Consumption and Long‐Term Labor Market Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 275-291, March.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:3:p:275-291
    DOI: 10.1002/hec.3290
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    1. Böckerman, Petri & Hyytinen, Ari & Kaprio, Jaakko & Maczulskij, Terhi, 2018. "If you drink, don't smoke: Joint associations between risky health behaviors and labor market outcomes," Social Science & Medicine, Elsevier, vol. 207(C), pages 55-63.
    2. Matilde Leonardi & Davide Guido & Rui Quintas & Fabiola Silvaggi & Erika Guastafierro & Andrea Martinuzzi & Somnath Chatterji & Seppo Koskinen & Beata Tobiasz-Adamczyk & Josep Maria Haro & Maria Cabel, 2018. "Factors Related to Unemployment in Europe. A Cross-Sectional Study from the COURAGE Survey in Finland, Poland and Spain," IJERPH, MDPI, vol. 15(4), pages 1-21, April.
    3. Terhi Maczulskij & Petri Böckerman, 2019. "Harsh times: do stressors lead to labor market losses?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(3), pages 357-373, April.
    4. Mangiavacchi, Lucia & Piccoli, Luca, 2018. "Parental alcohol consumption and adult children's educational attainment," Economics & Human Biology, Elsevier, vol. 28(C), pages 132-145.
    5. Cristina Lázaro-Pérez & José Ángel Martínez-López & José Gómez-Galán, 2020. "Addictions in Spanish College Students in Confinement Times: Preventive and Social Perspective," Social Sciences, MDPI, vol. 9(11), pages 1-21, October.
    6. Wang, Xiaolu & Chen, Qihui & Zhao, Qiran & Zhu, Chen, 2022. "Alcohol consumption and income: Evidence from one-sample and two-sample Mendelian randomizations," Economics Letters, Elsevier, vol. 219(C).
    7. Maczulskij, Terhi & Viinikainen, Jutta, 2018. "Is personality related to permanent earnings? Evidence using a twin design," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 116-129.
    8. Jeremy W. Bray & Jesse M. Hinde & Arnie P. Aldridge, 2018. "Alcohol use and the wage returns to education and work experience," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 87-100, February.

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