IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v26y2017i3p275-291.html
   My bibliography  Save this article

Alcohol Consumption and Long‐Term Labor Market Outcomes

Author

Listed:
  • Petri Böckerman
  • Ari Hyytinen
  • Terhi Maczulskij

Abstract

This paper examines whether alcohol consumption is related to long‐term labor market outcomes. We use twin data for Finnish men and women matched to register‐based individual information on employment and earnings. The twin data allow us to account for the shared environmental and genetic factors. The quantity of alcohol consumption was measured by weekly average consumption using self‐reported data from three surveys (1975, 1981 and 1990). The average of an individual's employment months and earnings were measured in adulthood over the period 1990–2009. The models that account for the shared environmental and genetic factors reveal that former drinkers and heavy drinkers both have almost 20% lower earnings compared with moderate drinkers. On average, former drinkers work annually approx. 1 month less over the 20‐year observation period. These associations are robust to the use of covariates, such as education, pre‐existing health endowment and smoking. Copyright © 2015 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:hlthec:v:26:y:2017:i:3:p:275-291
    DOI: 10.1002/hec.3290
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.3290
    Download Restriction: no

    File URL: https://libkey.io/10.1002/hec.3290?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mullahy, John & Sindelar, Jody, 1996. "Employment, unemployment, and problem drinking," Journal of Health Economics, Elsevier, vol. 15(4), pages 409-434, August.
    2. 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.
    3. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 2007. "The association of alcohol dependency with employment probability: evidence from the population survey ‘Health 2000 in Finland’," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 739-754, July.
    4. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
    5. van Ours, Jan C., 2002. "A pint a day raises a man's pay; but smoking blows that gain away," IZA Discussion Papers 473, Institute of Labor Economics (IZA).
    6. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    7. Cawley, John & Ruhm, Christopher J., 2011. "The Economics of Risky Health Behaviors," Handbook of Health Economics, in: Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), Handbook of Health Economics, volume 2, chapter 0, pages 95-199, Elsevier.
    8. Ziggy Macdonald & Michael A. Shields, 2001. "The Impact of Alcohol Consumption on Occupational Attainment in England," Economica, London School of Economics and Political Science, vol. 68(271), pages 427-453, August.
    9. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
    10. Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), 2011. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, volume 2, number 2.
    11. Vivian Hamilton & Barton H. Hamilton, 1997. "Alcohol and Earnings: Does Drinking Yield a Wage Premium," Canadian Journal of Economics, Canadian Economics Association, vol. 30(1), pages 135-151, February.
    12. Sloan, F.A. & Grossman, D.S., 2011. "Alcohol consumption in early adulthood and schooling completed and labor market outcomes at midlife by race and gender," American Journal of Public Health, American Public Health Association, vol. 101(11), pages 2093-2101.
    13. Garry F. Barrett, 2002. "The Effect of Alcohol Consumption on Earnings," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 79-96, March.
    14. Zarkin, Gary A. & French, Michael T. & Mroz, Thomas & Bray, Jeremy W., 1998. "Alcohol use and wages: New results from the national household survey on drug abuse," Journal of Health Economics, Elsevier, vol. 17(1), pages 53-68, January.
    15. Hyytinen, Ari & Ilmakunnas, Pekka & Toivanen, Otto, 2013. "The return-to-entrepreneurship puzzle," Labour Economics, Elsevier, vol. 20(C), pages 57-67.
    16. Maczulskij, Terhi, 2013. "Employment sector and pay gaps: Genetic and environmental influences," Labour Economics, Elsevier, vol. 23(C), pages 89-96.
    17. Tapio Paljärvi & Pekka Martikainen & Tiina Pensola & Taina Leinonen & Kimmo Herttua & Pia Mäkelä, 2015. "Life Course Trajectories of Labour Market Participation among Young Adults Who Experienced Severe Alcohol-Related Health Outcomes: A Retrospective Cohort Study," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-14, May.
    18. Weiwei Feng & Wei Zhou & J.S. Butler & Brenda M. Booth & Michael T. French, 2001. "The impact of problem drinking on employment," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 509-521, September.
    19. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Böckerman, Petri & Hyytinen, Ari & Kaprio, Jaakko & Maczulskij, Terhi, 2018. "If you drink, don't smoke: Joint associations between risky health behaviors and labor market outcomes," Social Science & Medicine, Elsevier, vol. 207(C), pages 55-63.
    2. Matilde Leonardi & Davide Guido & Rui Quintas & Fabiola Silvaggi & Erika Guastafierro & Andrea Martinuzzi & Somnath Chatterji & Seppo Koskinen & Beata Tobiasz-Adamczyk & Josep Maria Haro & Maria Cabel, 2018. "Factors Related to Unemployment in Europe. A Cross-Sectional Study from the COURAGE Survey in Finland, Poland and Spain," IJERPH, MDPI, vol. 15(4), pages 1-21, April.
    3. Terhi Maczulskij & Petri Böckerman, 2019. "Harsh times: do stressors lead to labor market losses?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(3), pages 357-373, April.
    4. Mangiavacchi, Lucia & Piccoli, Luca, 2018. "Parental alcohol consumption and adult children's educational attainment," Economics & Human Biology, Elsevier, vol. 28(C), pages 132-145.
    5. Cristina Lázaro-Pérez & José Ángel Martínez-López & José Gómez-Galán, 2020. "Addictions in Spanish College Students in Confinement Times: Preventive and Social Perspective," Social Sciences, MDPI, vol. 9(11), pages 1-21, October.
    6. 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.
    7. Wang, Xiaolu & Chen, Qihui & Zhao, Qiran & Zhu, Chen, 2022. "Alcohol consumption and income: Evidence from one-sample and two-sample Mendelian randomizations," Economics Letters, Elsevier, vol. 219(C).
    8. Maczulskij, Terhi & Viinikainen, Jutta, 2018. "Is personality related to permanent earnings? Evidence using a twin design," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 116-129.
    9. Jeremy W. Bray & Jesse M. Hinde & Arnie P. Aldridge, 2018. "Alcohol use and the wage returns to education and work experience," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 87-100, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Pinka Chatterji & Jeffrey DeSimone, 2006. "High School Alcohol Use and Young Adult Labor Market Outcomes," NBER Working Papers 12529, National Bureau of Economic Research, Inc.
    5. Marlon P. Mundt & Michael T. French, 2013. "Adolescent alcohol use, sociability and income as a young adult," Applied Economics, Taylor & Francis Journals, vol. 45(23), pages 3329-3339, August.
    6. Michael T. French & Ioana Popovici, 2011. "That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 127-146, February.
    7. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
    8. Preety Srivastava, 2010. "Does Bingeing Affect Earnings?," The Economic Record, The Economic Society of Australia, vol. 86(275), pages 578-595, December.
    9. 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.
    10. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155, February.
    11. Demirgüç-Kunt, Asli & Torre, Iván, 2022. "Measuring human capital in middle income countries," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 1036-1067.
    12. Johansson, Edvard & Alho, Hannu & Kiiskinen, Urpo & Poikolainen, Kari, 2004. "The Association of Alcohol Dependency with Employment Probability: Evidence from population survey Health 2000 in Finland," Discussion Papers 921, The Research Institute of the Finnish Economy.
    13. Marco Caliendo & Juliane Hennecke, 2022. "Drinking is different! Examining the role of locus of control for alcohol consumption," Empirical Economics, Springer, vol. 63(5), pages 2785-2815, November.
    14. Masanori Kuroki, 2017. "Does Drinking in Moderation Lead to Higher Life Satisfaction?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(1), pages 125-135, March.
    15. Justus Haucap & Annika Herr, 2014. "A note on social drinking: In Vino Veritas," European Journal of Law and Economics, Springer, vol. 37(3), pages 381-392, June.
    16. Ziebarth, Nicolas R. & Grabka, Markus M., 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 30, pages 219-244.
    17. Erdal Tekin, 2004. "Employment, Wages, and Alcohol Consumption in Russia," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 397-417, October.
    18. Ana I. Balsa & Michael T. French, 2010. "Alcohol use and the labor market in Uruguay," Health Economics, John Wiley & Sons, Ltd., vol. 19(7), pages 833-854, July.
    19. John Cawley & Johanna Catherine Maclean, 2012. "Unfit For Service: The Implications Of Rising Obesity For Us Military Recruitment," Health Economics, John Wiley & Sons, Ltd., vol. 21(11), pages 1348-1366, November.
    20. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 2007. "The association of alcohol dependency with employment probability: evidence from the population survey ‘Health 2000 in Finland’," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 739-754, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:26:y:2017:i:3:p:275-291. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.