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Title: Binge Drinking and Labor Market Success: A Longitudinal Study on Young People
Resulting in 1 citation.
1. Keng, Shao-Hsun
Huffman, Wallace Edgar
Binge Drinking and Labor Market Success: A Longitudinal Study on Young People
Journal of Population Economics 20,1 (January 2007): 35-54.
Also: http://www.springerlink.com/content/v044557798238035/
Cohort(s): NLSY79
Publisher: Springer
Keyword(s): Addiction; Alcohol Use; Income; Labor Market Outcomes

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

This paper presents a two-equation model of joint outcomes on an individual's decision to binge-drink and on his/her annual labor market earnings. The primary data source is the 1979 cohort of the National Longitudinal Survey of Youth, 1979–1994. We show that binge-drinking behavior is quite alcohol-price responsive and is a rational addiction. A new result is that an individual's decision to binge-drink has a statistically significant negative effect on his/her earnings. Furthermore, we conducted simulations of the short-run and long-run impacts of increasing the alcohol price. They showed that that the tendency for an individual to binge-drink heavily is reduced significantly, and the reduction is greater in the long- than short-run simulation. Also, an individual's annual earnings were increased. However, in the structural model, an individual's earnings have no significant effect on his/her tendency to engage in binge drinking. Our results contradict earlier findings from cross-sectional evidence that showed increased alcohol consumption raised an individual's earnings or wages. [ABSTRACT FROM AUTHOR]

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Bibliography Citation
Keng, Shao-Hsun and Wallace Edgar Huffman. "Binge Drinking and Labor Market Success: A Longitudinal Study on Young People." Journal of Population Economics 20,1 (January 2007): 35-54.