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Author: Bray, Jeremy W.
Resulting in 2 citations.
1. Bray, Jeremy W.
Alcohol Use, Human Capital, and Wages
Journal of Labor Economics 23,2 (April 2005): 279-312.
Cohort(s): NLSY79
Publisher: University of Chicago Press
Keyword(s): Alcohol Use; Educational Returns; Human Capital; Wages; Work Experience

This article develops and estimates a model of wage determination that isolates the effects of alcohol use on wages as mediated through human capital accumulation. Although generally insignificant, estimation results suggest that moderate alcohol use while in school or working has a positive effect on the returns to education or experience, and therefore on human capital accumulation, but heavier drinking reduces this gain slightly. Based on these results, alcohol use does not appear to adversely affect returns to education or work experience and therefore has no negative effect on the efficiency of education or experience in forming human capital.
Bibliography Citation
Bray, Jeremy W. "Alcohol Use, Human Capital, and Wages." Journal of Labor Economics 23,2 (April 2005): 279-312.
2. Bray, Jeremy W.
Hinde, Jesse M.
Aldridge, Arnie P.
Alcohol Use and the Wage Returns to Education and Work Experience
Health Economics 27,2 (February 2018): e87-e100.
Cohort(s): NLSY97
Publisher: Wiley Online
Keyword(s): Alcohol Use; Educational Attainment; Wages

Permission to reprint the abstract has not been received from the publisher.

Despite a widely held belief that alcohol use should negatively impact wages, much of the literature on the topic suggests a positive relationship between nonproblematic alcohol use and wages. Studies on the effect of alcohol use on educational attainment have also failed to find a consistent, negative effect of alcohol use on years of education. Thus, the connections between alcohol use, human capital, and wages remain a topic of debate in the literature. In this study, we use the 1997 cohort of the National Longitudinal Survey of Youth to estimate a theoretical model of wage determination that links alcohol use to wages via human capital. We find that nonbinge drinking is associated with lower wage returns to education whereas binge drinking is associated with increased wage returns to both education and work experience. We interpret these counterintuitive results as evidence that alcohol use affects wages through both the allocative and productive efficiency of human capital formation and that these effects operate in offsetting directions. We suggest that alcohol control policies should be more nuanced to target alcohol consumption in the contexts within which it causes harm.
Bibliography Citation
Bray, Jeremy W., Jesse M. Hinde and Arnie P. Aldridge. "Alcohol Use and the Wage Returns to Education and Work Experience." Health Economics 27,2 (February 2018): e87-e100.