Search Results
Source: Department of Economics, University of Akron
Resulting in 2 citations.
| 1. |
Renna, Francesco |
|
Economic Cost of Teen Drinking Working Paper, Department of Economics, University of Akron, 2005 Cohort(s): NLSY79 Publisher: Department of Economics, University of Akron Keyword(s): Alcohol Use; Endogeneity; High School Completion/Graduates; High School Diploma; Wage Levels Permission to reprint the abstract has not been received from the publisher. This paper analyzes the effect that heavy drinking has on the probability of graduating on-time from high school. This analysis was motivated by the empirical evidence that students who graduate on-time from high school earn more than students who graduate late. The analysis is conducted on students in their senior year of high school using data from the National Longitudinal Survey of Youth 1979. Importantly, this paper shows that the usual instruments used to correct for the endogeneity of the decision to drink are strong instrument only in the regression for women, but not for men. Finally this paper finds that heavy drinking decreases the probability of graduating on-time by 17.5 percent. Because graduating late decreases the hourly wage of women by $0.90, the annual cost of drinking computed for a full-time worker is about $315. |
|
|
Bibliography Citation
Renna, Francesco. "Economic Cost of Teen Drinking." Working Paper, Department of Economics, University of Akron, 2005. |
| 2. |
Renna, Francesco |
|
Teens' Alcohol Consumption and Schooling Working Paper, Department of Economics, University of Akron, 2006 Cohort(s): NLSY79 Publisher: Department of Economics, University of Akron Keyword(s): Academic Development; Alcohol Use; Cognitive Development; Educational Attainment; GED/General Educational Diploma/General Equivalency Degree/General Educational Development; High School Diploma; High School Dropouts Permission to reprint the abstract has not been received from the publisher. While research outside economics has found that drinking has a negative effect on cognitive skills, some economists have failed to find any negative relationship between drinking and academic performance. This paper argues that the reason for this discrepancy is due to the way education is measured in the economic literature. Usually, academic achievement is measured in terms of number of years of completed education at the age of 25. Hence, both a General Equivalency Diploma (GED) and a high school diploma are considered equivalent to 12 years of completed education, even if GED graduates have earnings more similar to high school dropouts. This study shows that binge drinking reduces the probability of receiving a high school diploma and increases the probability of graduating with a GED. Moreover, this study finds that alcohol policies do not affect the dropout rate measured at the age of 25, but they do affect the probability that a student will graduate on time. In conclusion, bingeing is found to be responsible for inducing individuals to temporarily drop out of school. Eventually, these individuals return to school to complete their education, most likely by obtaining a GED diploma. |
|
|
Bibliography Citation
Renna, Francesco. "Teens' Alcohol Consumption and Schooling." Working Paper, Department of Economics, University of Akron, 2006. |