Do Drinkers Earn Less?

Heien, Dale

doi:10.2307/1061303

“…For both genders, moderate drinkers seem to earn about 3.5 percent more than rare drinkers; the effect is even more pronounced for regular drinkers (7 percent). These results are in line with the rest of the literature (MacDonald and Shields, 2001;Zarkin et al, 1998;Hamilton and Hamilton, 1997;Heien, 1996;French and Zarkin, 1995).…”

Section: Ols Resultssupporting

confidence: 93%

“…Taking data from the US Quality and Employment Survey, they found that drinkers earn significantly more than nondrinkers. In the subsequent years, several papers revealed that the relationship between units of alcohol consumed and wages follows an inverse U-function (French and Zarkin, 1995;Heien, 1996;Hamilton and Hamilton, 1997;Zarkin et al, 1998;MacDonald and Shields, 2001).…”

Section: Background and Previous Studiesmentioning

confidence: 99%

See 1 more Smart Citation

In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages

Ziebarth

¹

,

Grabka

²

2009

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science. Terms of use: Documents inThe decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly.Any opinions expressed in this series are those of the author(s) and not those of DIW Berlin.Research disseminated by DIW Berlin may include views on public policy issues, but the institute itself takes no institutional policy positions. AbstractThe positive association between moderate alcohol consumption and wages is well documented in the economic literature. Positive health effects as well as networking mechanisms serve as explanations for the "alcohol-income puzzle." Using individual-based microdata from the GSOEP for 2006, we confirm that this relationship exists for Germany as well. More importantly, we shed light on the alcohol-income puzzle by analyzing, for the first time, the association between beverage-specific drinking behavior and wages. In our analysis, we disentangle the general wage effect of drinking into diverse effects for different types of drinkers. Mincerian estimates reveal significant and positive relationships between wine drinkers and wages as well as between beverage-unspecific drinkers and wages. We are unable to detect endogeneity problems with the drinking variables, which speaks in favor of OLS regressions. When splitting the sample into age groups, the "wine gain" disappears for employees under the age of 35 and increases in size and significance for higher age groups. We also find a "beer gain" for residen...

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“…Recent research on the relationship between alcohol consumption and labour market success has generally found that moderately drinking individuals do better on the labour market than abstainers (Barret 2002, Berger & Leigh 1988, French & Zarkin 1995, Hamilton & Hamilton 1997, Heien 1996, Zarkin et al 1998, McDonald & Shields 2001.…”

Section: Introductionmentioning

confidence: 99%

Abstaining From Alcohol and Labour Market Underperformance—have We Forgotten the ‘Dry’ Alcoholics?

Johansson

¹

,

Alho²,

Kiiskinen³

et al. 2006

Alcohol and Alcoholism

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. ABSTRACT: Prior research on the relationship between alcohol consumption and labour market success has generally found that abstainers do worse on the labour market than moderately drinking individuals. Some authors have argued that these results are consistent with medical research finding that moderate alcohol consumption is associated with improved health, and that this improved health also carries over to improved labour market success. However, very seldom, if ever, has attention been paid to the fact that a part of the abstainers are ex-alcoholics, who have quit drinking owing to alcohol problems. In this paper we show, using the new Finnish "Health 2000" dataset, that the underperformance of abstainers in a labour market sense is almost entirely due to the fact that some abstainers are ex-drinkers who have been diagnosed with alcoholism. Finnish men who have never drunk alcohol are not doing worse than drinkers. Terms of use: Documents in

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“…This latter concern has stimulated a lot of academic interest in recent years, not least because of the emergence of large social surveys that yield sufficient information to analyse these problems in some detail. For example, the relationship between alcohol consumption and labour market outcomes has received a lot of attention in the empirical literature [1][2][3][4][5][6][7][8]. In addition, there is a growing body of empirical research that has considered the relationship between illicit drug use and wages or labour supply.…”

Section: Introductionmentioning

confidence: 99%

The Wages of Sin? Illegal Drug Use and the Labour Market

MacDonald

¹

,

Pudney

²

2000

Labour

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SUMMARYWe use data from the British Crime Survey (BCS) to analyse the relationship between illicit drug use and labour market outcomes for a sample of men and women aged 16 to 25. In using this data we highlight a serious design flaw in the BCS questionnaire structure that presents a serious barrier to statistical modelling of drug use at the individual level. We propose a simple way of overcoming this problem and proceed to estimate a model of occupational attainment jointly determined with unemployment and current drug use, conditional on past drug use. Separating the commonly abused drugs into a "hard" and "soft" category, we find that past hard drug use has a significant positive association with current unemployment, but find no significant association between past hard or soft drug use and occupational attainment. We also find no significant association between current drug use and attainment, although we observe that current drug use is associated with current unemployment. We suggest that previous research has tended to find a positive relationship between drug use and wages because of a failure to take into account current labour market status.KEY WORDS -Illicit drug use, unemployment, occupational attainment.

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Do Drinkers Earn Less?

Cited by 85 publications

References 16 publications

In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages

In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages

Abstaining From Alcohol and Labour Market Underperformance—have We Forgotten the ‘Dry’ Alcoholics?

The Wages of Sin? Illegal Drug Use and the Labour Market

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