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Unemployment claims in Philadelphia one year after implementation of the sweetened beverage tax

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  • Hannah G Lawman
  • Sara N Bleich
  • Jiali Yan
  • Michael T LeVasseur
  • Nandita Mitra
  • Christina A Roberto

Abstract

Objectives: Possible adverse economic impacts of sweetened drink taxes are a key concern for numerous stakeholders. This study examined changes in unemployment benefit claims filings in Philadelphia compared to its neighboring counties two years prior to and 14 months post implementation of a 1.5 cents per ounce excise tax on sugar- and artificially-sweetened beverages. Methods: Data were obtained from the Pennsylvania Department of Labor. Interrupted time series analysis was used to determine if there was a change in new monthly unemployment claims filings post-tax implementation in Philadelphia compared to surrounding counties in supermarkets, select potentially affected industries, and in total claims filings across all industries combined. Results: Results showed there were no statistically significant changes to unemployment claims in Philadelphia compared to neighboring counties for supermarkets (ß = -9.45, 95% CI = -98.11, 79.22), soft drink manufacturers (ß = -0.13, 95% CI = -9.13, 8.88), across other potentially affected industries (ß = 9.16, 95% CI = -488.29, 506.60), or across all industries (ß = -445.85, 95% CI = -4272.39, 3380.68) following implementation of the beverage tax. Unemployment declined similarly in Philadelphia compared to surrounding counties. Conclusions: Public reports of increased unemployment within the first year following the implementation of the Philadelphia beverage tax are not supported by this analysis. Future work should examine employment outcomes and include longer follow-up periods.

Suggested Citation

  • Hannah G Lawman & Sara N Bleich & Jiali Yan & Michael T LeVasseur & Nandita Mitra & Christina A Roberto, 2019. "Unemployment claims in Philadelphia one year after implementation of the sweetened beverage tax," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-10, March.
  • Handle: RePEc:plo:pone00:0213218
    DOI: 10.1371/journal.pone.0213218
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    References listed on IDEAS

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    2. Goncalves, Judite & Merenda, Roxanne & Pereira dos Santos, João, 2023. "Not So Sweet: Impacts of a Soda Tax on Producers," IZA Discussion Papers 15968, Institute of Labor Economics (IZA).
    3. Law, Cherry & Cornelsen, Laura & Adams, Jean & Pell, David & Rutter, Harry & White, Martin & Smith, Richard, 2020. "The impact of UK soft drinks industry levy on manufacturers’ domestic turnover," Economics & Human Biology, Elsevier, vol. 37(C).
    4. Alyssa J. Moran & Yuxuan Gu & Sasha Clynes & Attia Goheer & Christina A. Roberto & Anne Palmer, 2020. "Associations between Governmental Policies to Improve the Nutritional Quality of Supermarket Purchases and Individual, Retailer, and Community Health Outcomes: An Integrative Review," IJERPH, MDPI, vol. 17(20), pages 1-23, October.
    5. Díaz, Juan-José & Sánchez, Alan & Diez-Canseco, Francisco & Jaime Miranda, J. & Popkin, Barry M., 2023. "Employment and wage effects of sugar-sweetened beverage taxes and front-of-package warning label regulations on the food and beverage industry: Evidence from Peru," Food Policy, Elsevier, vol. 115(C).
    6. Paraje, Guillermo & Colchero, Arantxa & Wlasiuk, Juan Marcos & Sota, Antonio Martner & Popkin, Barry M., 2021. "The effects of the Chilean food policy package on aggregate employment and real wages," Food Policy, Elsevier, vol. 100(C).
    7. Libby Hattersley & Alessia Thiebaud & Lynn Silver & Kate Mandeville, 2020. "Countering Common Arguments Against Taxes on Sugary Drinks," World Bank Publications - Reports 34361, The World Bank Group.
    8. Libby Hattersley & Alan Fuchs & Alberto Gonima & Lynn Silver & Kate Mandeville, 2020. "Business, Employment, and Productivity Impacts of Sugar-Sweetened Beverages Taxes," World Bank Publications - Reports 34082, The World Bank Group.
    9. Felipe Lozano‐Rojas & Patrick Carlin, 2022. "The effect of soda taxes beyond beverages in Philadelphia," Health Economics, John Wiley & Sons, Ltd., vol. 31(11), pages 2381-2410, November.
    10. World Bank, 2020. "Evidence Brief," World Bank Publications - Reports 33968, The World Bank Group.
    11. Samantha Marinello & Julien Leider & Lisa M Powell, 2021. "Employment impacts of the San Francisco sugar-sweetened beverage tax 2 years after implementation," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-16, June.
    12. Mounsey, Sarah & Veerman, Lennert & Jan, Stephen & Thow, Anne Marie, 2020. "The macroeconomic impacts of diet-related fiscal policy for NCD prevention: A systematic review," Economics & Human Biology, Elsevier, vol. 37(C).

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