Alcohol Use and Wages of Young Men: Whites vs. Nonwhites
Abstract
According to the medical community a host of ills accompanies prolonged alcohol use including memory loss, motor dysfunction, and impaired judgement. While deduction suggests alcohol use would reduce wages, past empirical studies find differently. For example, Berger and Leigh (1988) find a 32% wage premium for drinkers. Our study differs in two ways. First, self-selection is corrected using observed variables and secondly, an adjustment for the income effect is incorporated. Our results suggest drinkers receive a wage penalty the size of which differs across races. Nonwhite drinkers (blacks and hispanics) face a 7.3% penalty while white drinkers receive a 3.2% penalty.
Recommended Citation
R. R. Bryant et al., "Alcohol Use and Wages of Young Men: Whites vs. Nonwhites," International Review of Applied Economics, Taylor & Francis, Jan 2006.
The definitive version is available at https://doi.org/10.1080/758539007
Department(s)
Mathematics and Statistics
International Standard Serial Number (ISSN)
0269-2171
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2006 Taylor & Francis, All rights reserved.
Publication Date
01 Jan 2006