IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/199911010800001331.html
   My bibliography  Save this paper

Health, Binge Drinking, and Labor Market Success: A Longitudinal Study on Young People

Author

Listed:
  • Keng, Shao Hsun
  • Huffman, Wallace E.

Abstract

Health, like schooling, is a form of human capital and can be expected to be positively related to labor productivity and labor supply. The production of good health and labor productivity, however, sometimes competes with an individual's lifestyle, e.g., binge drinking. In this study, an individual's health has three dimensions: current health status, binge drinking which is an unhealthy lifestyle, and stature or mature height which is a young adult's health endowment. This study presents and fits a dynamic model of an individual's demand for health, demand for binge drinking, labor supply, and wage or demand for labor equationsto the NLSY 1979 cohort panel data ofyoimg people. We find that binge drinking has a negative but insignificanteffect on the demand for health, an individual's good health and larger stature increase his/her wage and binge drinkingreduces it. An individual's good health and binge drinking increase his/herlaborsupply. An individual's decision to binge drinking is shown to be rational addiction which is forward looking (rather than myopic which ignores future impacts) and to be highly responsive to the price of alcohol in the long run and to the legal minimum drinking age. We also show thatlabor productivity of 1979 NLSY cohort ismost likely 6percent lower than earlier cohorts due totheir higher frequency of binge drinking, shorter stature, and lower educational achievement

Suggested Citation

  • Keng, Shao Hsun & Huffman, Wallace E., 1999. "Health, Binge Drinking, and Labor Market Success: A Longitudinal Study on Young People," ISU General Staff Papers 199911010800001331, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199911010800001331
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/0fd3ae83-55a3-482b-bc54-411fef00ef02/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Robert Fogel & Dora Costa, 1997. "A theory of technophysio evolution, with some implications for forecasting population, health care costs, and pension costs," Demography, Springer;Population Association of America (PAA), vol. 34(1), pages 49-66, February.
    3. 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.
    4. Bishop, John Hillman, 1989. "Is the Test Score Decline Responsible for the Productivity Growth Decline?," American Economic Review, American Economic Association, vol. 79(1), pages 178-197, March.
    5. Mullahy, John & Sindelar, Jody L, 1993. "Alcoholism, Work, and Income," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 494-520, July.
    6. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    7. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, vol. 84(3), pages 396-418, June.
    8. Amemiya, Takeshi, 1979. "The Estimation of a Simultaneous-Equation Tobit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 169-181, February.
    9. 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.
    10. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    11. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1.
    12. Nelson, Forrest & Olson, Lawrence, 1978. "Specification and Estimation of a Simultaneous-Equation Model with Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 695-709, October.
    13. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    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. Ana Isabel Gil & Jose Alberto Molina, 2007. "Human development and alcohol abuse in adolescence," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1315-1323.

    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. Shao-Hsun Keng & Wallace Huffman, 2010. "Binge drinking and labor market success: a longitudinal study on young people," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 303-322, January.
    2. Keng, Shao-Hsun, 1998. "The demand for health, alcohol abuse, and labor market outcomes: a longitudinal study," ISU General Staff Papers 1998010108000012934, Iowa State University, Department of Economics.
    3. Donald S. Kenkel & Ping Wang, 1999. "Are Alcoholics in Bad Jobs?," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research, pages 251-278, National Bureau of Economic Research, Inc.
    4. Ziggy MacDonald, 2004. "What Price Drug Use? The Contribution of Economics to an Evidence‐Based Drugs Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 113-152, April.
    5. M. Christopher Auld, 1998. "Wages, Alcohol Use, and Smoking: Simultaneous Estimates," HEW 9808001, University Library of Munich, Germany.
    6. Andrienko Yury & Nemtsov Aleksandr, 2005. "Estimation of individual demand for alcohol," EERC Working Paper Series 05-10e, EERC Research Network, Russia and CIS.
    7. Cook, Philip J. & Moore, Michael J., 2000. "Alcohol," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 30, pages 1629-1673, Elsevier.
    8. Clark, Andrew & Etile, Fabrice, 2002. "Do health changes affect smoking? Evidence from British panel data," Journal of Health Economics, Elsevier, vol. 21(4), pages 533-562, July.
    9. Yuriy Andrienko & A. Nemtsov, 2006. "Estimation of Individual Demand for Alcohol," Working Papers w0089, Center for Economic and Financial Research (CEFIR).
    10. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    11. Ziggy MacDonald & Michael Shields, "undated". "The Impact of Alcohol Use on Occupational Attainment and Wages," Discussion Papers in Public Sector Economics 98/8, Division of Economics, School of Business, University of Leicester.
    12. Erdal Tekin, 2004. "Employment, Wages, and Alcohol Consumption in Russia," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 397-417, October.
    13. Cook, Philip J. & Moore, Michael J., 1999. "Alcohol," Working Papers 156, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    14. Jonathan Klick & Thomas Stratmann, 2006. "Subsidizing Addiction: Do State Health Insurance Mandates Increase Alcohol Consumption?," The Journal of Legal Studies, University of Chicago Press, vol. 35(1), pages 175-198, January.
    15. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1996. "The impact of alcohol consumption and marijuana use on high school graduation," Health Economics, John Wiley & Sons, Ltd., vol. 5(1), pages 77-92, January.
    16. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    17. Piccoli, Luca & Tiezzi, Silvia, 2021. "Rational addiction and time-consistency: An empirical test," Journal of Health Economics, Elsevier, vol. 80(C).
    18. Tekin, Erdal, 2002. "Employment, Wages, and Alcohol Consumption in Russia: Evidence from Panel Data," IZA Discussion Papers 432, Institute of Labor Economics (IZA).
    19. Chen, Li-Shiun & Wang, Ping & Yao, Yao, 2018. "Power of personalized smoking cessation: A unified lifecycle framework for policy evaluation," Working Paper Series 20333, Victoria University of Wellington, School of Economics and Finance.
    20. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.

    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:isu:genstf:199911010800001331. 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: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    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.