The Study of the Impact of Alcohol Consumption on Wage Rate
These authors contributed equally.
- DOI
- 10.2991/aebmr.k.220307.409How to use a DOI?
- Keywords
- Alcohol consumption; Employment; Wage rate; Instrumental variables
- Abstract
Driving by the incentive to help policymakers design more appropriate decisions and providing individuals with more accurate direction about consuming alcohol, this study explores the impact of alcohol consumption on people’s employment attainment. The wage rate use is a specific measure for employment attainment. Using the data about the labour market outcomes, alcohol consumption, and assorted demographics for individuals comes from the National Longitudinal Survey of Youth (NLSY) 1989 and 1994, OLS regressions and Instrumental regressions are applied as approaches due to the endogenous nature of alcohol consumption. This study finds out that there is a significant and positive return of alcohol consumption on the wage rate. Specifically, there is an inverse U-shaped relationship between individuals’ drinking habits and their wage rate. In addition, the study explores the inverse U-shaped relationship separately for men and women and conclude the slight differences in the extreme points for different genders. The innovative points of our study are to overcome the endogenous nature of alcohol consumption measures and the differences in the relationship between drinking and wage rates for males and females.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Yichen Sun AU - Ruiqi Zhang PY - 2022 DA - 2022/03/26 TI - The Study of the Impact of Alcohol Consumption on Wage Rate BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 2497 EP - 2503 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.409 DO - 10.2991/aebmr.k.220307.409 ID - Sun2022 ER -