IDEAS home Printed from https://ideas.repec.org/p/fip/fedawp/2014-20.html
   My bibliography  Save this paper

Do Minimum Wages Really Increase Youth Drinking and Drunk Driving?

Author

Listed:
  • Sabia, Joseph J.

    () (San Diego State University)

  • Pitts, M. Melinda

    () (Federal Reserve Bank of Atlanta)

  • Argys, Laura

    () (University of Colorado-Denver)

Abstract

Adams, Blackburn, and Cotti (ABC) found that increases in minimum wages were positively related to drunk driving–related traffic fatalities for those ages 16 to 20. The hypothesized mechanism for this relationship—increased alcohol consumption caused by minimum wage–induced income gains—remains empirically unexplored. Using data from two national behavioral surveys and an identification strategy identical to ABC, we find little evidence that an increase in the minimum wage leads to increases in alcohol consumption or drunk driving among teenagers. These results suggest a much smaller set of plausible causal channels to explain ABC's findings.

Suggested Citation

  • Sabia, Joseph J. & Pitts, M. Melinda & Argys, Laura, 2014. "Do Minimum Wages Really Increase Youth Drinking and Drunk Driving?," FRB Atlanta Working Paper 2014-20, Federal Reserve Bank of Atlanta.
  • Handle: RePEc:fip:fedawp:2014-20
    as

    Download full text from publisher

    File URL: https://frbatlanta.org/-/media/Documents/research/publications/wp/2014/wp1420.pdf?la=en
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hu, Xiaowen & Stowe, C. Jill, 2013. "The Effect of Income on Health Choices: Physical Activity and Alcohol Use," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149616, Agricultural and Applied Economics Association.
    2. Charles Brown & Curtis Gilroy & Andrew Kohen, 1982. "The Effect of the Minimum Wage on Employment and Unemployment: A Survey," NBER Working Papers 0846, National Bureau of Economic Research, Inc.
    3. Addison, John T. & Blackburn, McKinley L. & Cotti, Chad D., 2009. "Do minimum wages raise employment? Evidence from the U.S. retail-trade sector," Labour Economics, Elsevier, vol. 16(4), pages 397-408, August.
    4. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027.
    5. Joseph Sabia, 2014. "The Effects of Minimum Wages over the Business Cycle," Journal of Labor Research, Springer, vol. 35(3), pages 227-245, September.
    6. David Neumark & Mark Schweitzer & William Wascher, 2005. "The Effects of Minimum Wages on the Distribution of Family Incomes: A Nonparametric Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 867-894.
    7. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
    8. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    9. Scott Adams & McKinley L. Blackburn & Chad D. Cotti, 2012. "Minimum Wages and Alcohol-Related Traffic Fatalities among Teens," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 828-840, August.
    10. Hu, Xiaowen & Stowe, C. Jill, 2013. "The Effect of Income on Health Choices: Alcohol Use," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143060, Southern Agricultural Economics Association.
    11. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2013. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 333-369.
    12. Jon Nelson, 2013. "Meta-analysis of alcohol price and income elasticities – with corrections for publication bias," Health Economics Review, Springer, vol. 3(1), pages 1-10, December.
    13. Christopher Carpenter & Carlos Dobkin, 2009. "The Effect of Alcohol Consumption on Mortality: Regression Discontinuity Evidence from the Minimum Drinking Age," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 164-182, January.
    14. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    15. Stephenson Strobel & Alex Peden & Evelyn Forget, 2014. "Minimum Wages And Adolescent Alcohol Use: Evidence From A Natural Experiment," Working Papers 140011, Canadian Centre for Health Economics.
    16. Anderson, D. Mark, 2010. "Does information matter? The effect of the Meth Project on meth use among youths," Journal of Health Economics, Elsevier, vol. 29(5), pages 732-742, September.
    17. David Neumark & William Wascher, 2002. "Do Minimum Wages Fight Poverty?," Economic Inquiry, Western Economic Association International, vol. 40(3), pages 315-333, July.
    18. Vipul Bhatt, 2011. "Adolescent Alcohol Use and Intergenerational Transfers: Evidence from Micro Data," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 296-307, June.
    19. Richard V. Burkhauser & Kenneth A. Couch & David C. Wittenburg, 2000. "Who Minimum Wage Increases Bite: An Analysis Using Monthly Data from the SIPP and the CPS," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 16-40, July.
    20. Carpenter, Christopher, 2004. "How do Zero Tolerance Drunk Driving Laws work?," Journal of Health Economics, Elsevier, vol. 23(1), pages 61-83, January.
    21. Sara Markowitz & John Tauras, 2009. "Substance use among adolescent students with consideration of budget constraints," Review of Economics of the Household, Springer, vol. 7(4), pages 423-446, December.
    22. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 945-964, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael R. Strain & Peter Brummund, 2016. "Real and permanent minimum wages," AEI Economics Working Papers 875967, American Enterprise Institute.
    2. repec:bla:ecinqu:v:55:y:2017:i:4:p:1986-2007 is not listed on IDEAS
    3. Dasgupta Kabir & Pacheco Gail, 2018. "Warrantless Arrest Laws for Domestic Violence: How Are Youth Affected?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-20, January.
    4. Pohl, R. Vincent & Clark, Kathryn L. & Thomas, Ryan C., 2017. "Minimum Wages and Healthy Diet," MPRA Paper 87239, University Library of Munich, Germany.
    5. Susan L. Averett & Julie K. Smith & Yang Wang, 2017. "The effects of minimum wages on the health of working teenagers," Applied Economics Letters, Taylor & Francis Journals, vol. 24(16), pages 1127-1130, September.
    6. repec:tpr:amjhec:v:5:y:2019:i:1:p:42-64 is not listed on IDEAS
    7. Kabir Dasgupta, 2016. "Youth Response to State Cyberbullying Laws," Working Papers 2016-05, Auckland University of Technology, Department of Economics.
    8. Brady P. Horn & Johanna Catherine Maclean & Michael R. Strain, 2017. "Do Minimum Wage Increases Influence Worker Health?," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1986-2007, October.
    9. Hafner, Lucas, 2019. "Do minimum wages improve self-rated health? Evidence from a natural experiment," FAU Discussion Papers in Economics 02/2019, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    10. repec:iab:iabdpa:201917 is not listed on IDEAS
    11. Sabia, Joseph J. & Bass, Brittany, 2015. "Do Anti-Bullying Laws Reduce Youth Violence?," IZA Discussion Papers 9201, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    minimum wage; teen drunk driving; alcohol consumption;

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Are Minimum Wages a Silent Killer? New Evidence on Drunk Driving Fatalities (REStat forthcoming) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedawp:2014-20. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elaine Clokey). General contact details of provider: http://edirc.repec.org/data/frbatus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.