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The Impact of Alcohol Consumption and Marijuana Use on High School Graduation

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  • Tetsuji Yamada
  • Michael Kendix
  • Tadashi Yamada

Abstract

In this study we use data from the National Longitudinal Survey of Youth (NLSY). We estimate the relationship between high school graduation, and alcohol and marijuana use among the sample of high school students. We also estimate these students' demand determinants for each of these substances. Our results show that there are significant adverse effects of alcohol and marijuana use on high school graduation. In addition, we find that beer taxes, minimum drinking age laws and marijuana decriminalization have a significant impact on the demand for these substances. Our findings have important policy implications. We find that a ten percent increase in beer tax, reduces alcohol consumption among high school students, which in turn raises the probability of high school graduation by about 3.7 percent. Further, a ten percent increase in liquor prices, raises the probability of high school graduation by 6.6 to 8.2 percent. Raising the minimum drinking age for liquor also reduces liquor and wine consumption, and consequently, improves the probability of high school graduation.

Suggested Citation

  • Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4497
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    • I10 - Health, Education, and Welfare - - Health - - - General

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