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Title: The Lasting Effects of Leaving School in An Economic Downturn On Alcohol Use
Resulting in 1 citation.
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Maclean, Johanna Catherine |
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The Lasting Effects of Leaving School in An Economic Downturn On Alcohol Use Presented: Washington, DC, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 7-9, 2013 Cohort(s): NLSY79 Publisher: Association for Public Policy Analysis and Management (APPAM) Keyword(s): Alcohol Use; Economic Changes/Recession; Gender Differences; Labor Market Outcomes; Schooling; State-Level Data/Policy; Unemployment Rate Permission to reprint the abstract has not been received from the publisher. In this study I test whether leaving school in an economic downturn has a lasting impact on alcohol use. Two empirical patterns motivate this research. Workers who leave school in an economic downturn persistently earn lower wages and labor market outcomes are associated with alcohol use. Recent work suggests that leaving school in an economic downturn has a lasting impact on health outcomes (mental and physical functioning, obesity). We know little about health behaviors such as alcohol use, however. Understanding risk factors for alcohol use, particularly excessive use, is important for improving social welfare. Because of market imperfections excessive drinkers do not fully internalize the cost of their actions and instead impose costs on others through motor vehicle accidents, health care utilization, violence, crime, reduced labor market productivity, etc. The costs of alcohol for the U.S. are estimated to be as high as $255 billion per year (Bouchery et al, 2011). I examine three measures of past 30 day alcohol use in middle age: number of alcoholic drinks, heavy drinking (≥ 60 drinks), and weekly binge drinking. Data are drawn from the National Longitudinal Survey of Youth 1979 Cohort. I proxy economic conditions at school-leaving with the state unemployment rate, and exploit variation generated by volatility in the U.S. business cycle between 1976 and 1992 to identify alcohol use effects. Because the severe recession of the early 1980s lies within this time period, I compare cohorts that left before, during, and after this recession. To address the potential endogeneity of the time and location of school-leaving, I instrument the school-leaving state unemployment rate. |
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Bibliography Citation
Maclean, Johanna Catherine. "The Lasting Effects of Leaving School in An Economic Downturn On Alcohol Use." Presented: Washington, DC, Association for Public Policy Analysis and Management (APPAM) Annual Fall Research Conference, November 7-9, 2013. |