Skip to main content

The effect of drinking and smoking on the labour market outcomes of low-income young adults

Buy Article:

$47.00 plus tax (Refund Policy)

Among adults the causal ‘drinking bonus’ and ‘smoking penalty’ have been estimated to be as large as 12% and 24%, respectively. The magnitudes of these effects compare in size with many active labour market programs targeted at low-income young adults. This article extends the literature by examining these relationships in such a group. Somewhat surprisingly the data indicate that just as in the greater population young drinkers have more favourable labour market outcomes than nondrinkers. However, when a fixed-effects approach is used to identify causal impacts there is no evidence that drinking has a positive impact on labour market outcomes and some evidence for negative returns to drinking. The smoking penalty is estimated to be much smaller among this group and not statistically significant. Finally, estimates suggest that the observed correlations between consumption and labour market outcomes are biased by unobserved characteristics of the individual as well as unobservables that change over time that are likely causing the treatment decision.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Keywords: I19; J20; J30; alcohol; labour market; smoking

Document Type: Research Article

Affiliations: School of Social Sciences, Humanities and Arts, 5200 North Lake Road, University of California – Merced, MercedCA 95343, USA

Publication date: 2013-02-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more