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Wage Effects of Drinking in Australia

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  • Yew Liang Lee

Abstract

This article analyses the wage effects of drinking using the Australian Twin Registry data. A multinomial logit framework is employed to explain the allocation of workers across various drinking states, and to correct for selection bias in the wage equations. It is found that there is a significant positive wage premium for moderate drinking. A favourable family background (during childhood) is positively related to the measure of moderate drinking. Greater genetic endowments are also associated with moderate drinking.

Suggested Citation

  • Yew Liang Lee, 2003. "Wage Effects of Drinking in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(3), pages 265-282, September.
    • Handle: RePEc:bla:ausecr:v:36:y:2003:i:3:p:265-282
    DOI: 10.1111/1467-8462.00286
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    Cited by:

    1. Xueyan Zhao & Mark Harris & Preety Ramful, 2004. "Alcohol Consumption in Australia: An Application of the Ordered Generalised Extreme Value Model," Econometric Society 2004 Australasian Meetings 301, Econometric Society.
    2. J. Jarl & U.-G. Gerdtham, 2012. "Does drinking affect long-term sickness absence? A sample selection approach correcting for employment and accounting for drinking history," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2811-2825, August.
    3. Jenny Lye & Joe Hirschberg, 2010. "Alcohol Consumption And Human Capital: A Retrospective Study Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 309-338, April.
    4. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
    5. Barry R. Chiswick & Paul W. Miller, 2015. "Negative and Positive Assimilation by Prices and by Quantities," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(1), pages 5-28.
    6. Miller, Paul & Mulvey, Charles & Martin, Nick, 2006. "The return to schooling: Estimates from a sample of young Australian twins," Labour Economics, Elsevier, vol. 13(5), pages 571-587, October.
    7. Maryam Dilmaghani, 2022. "The link between smoking, drinking and wages: Health, workplace social capital or discrimination?," Industrial Relations Journal, Wiley Blackwell, vol. 53(2), pages 160-183, March.
    8. Harris, Mark N. & Ramful, Preety & Zhao, Xueyan, 2006. "An ordered generalised extreme value model with application to alcohol consumption in Australia," Journal of Health Economics, Elsevier, vol. 25(4), pages 782-801, July.
    9. Daiji Kawaguchi & Jungmin Lee & Ming‐Jen Lin & Izumi Yokoyama, 2023. "Is Asian flushing syndrome a disadvantage in the labor market?," Health Economics, John Wiley & Sons, Ltd., vol. 32(7), pages 1478-1503, July.
    10. Petri Böckerman & Ari Hyytinen & Terhi Maczulskij, 2017. "Alcohol Consumption and Long‐Term Labor Market Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 275-291, March.
    11. Preety Srivastava, 2010. "Does Bingeing Affect Earnings?," The Economic Record, The Economic Society of Australia, vol. 86(275), pages 578-595, December.

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