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Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data

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  • Tekin, Erdal

    () (American University)

Abstract

This paper examines the effects of alcohol consumption on employment and wages for males and females in Russia. Both cross sectional and fixed-effects models are estimated utilizing data from the Russia Longitudinal Monitoring Survey. The results from the models that do not control for unobserved heterogeneity indicate that alcohol consumption has a positive impact on employment and wages. Further, there is some evidence in favor of an inverse U-shaped relationship between alcohol consumption and the labor market outcomes. Once the unobserved heterogeneity is controlled for using fixed effects, the positive association diminishes for the employment models for males and females. For the wage models, controlling for unobserved heterogeneity strengthens the positive impact of alcohol consumption both in significance and magnitude for males, while the reverse is true for females. However, the inverse U-shaped relationship obtained in cross-sectional models no longer exists. The results underline that unobserved heterogeneity plays an important role on the relationship between alcohol consumption and labor market behavior for both males and females. The findings are robust to model specifications and various alcohol consumption measures.

Suggested Citation

  • Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp432
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
    3. Yuriy Andrienko & A. Nemtsov, 2006. "Estimation of Individual Demand for Alcohol," Working Papers w0089, Center for Economic and Financial Research (CEFIR).
    4. Kim, Vitally, 2010. "Level of alcohol consumption and worker’s labor market position. Multivariate probit model approach," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 18(2), pages 53-77.
    5. Heineck, Guido & Schwarze, Johannes, 2003. "Substance Use and Earnings: The Case of Smokers in Germany," IZA Discussion Papers 743, Institute for the Study of Labor (IZA).
    6. Michael French & Johanna Catherine Maclean & Jody Sindelar & Hai Fang, 2011. "The morning after: alcohol misuse and employment problems," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2705-2720.

    More about this item

    Keywords

    Russia; wages; Employment; alcohol consumption;

    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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