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The Effect of Alcohol Consumption on Earnings

Year: 2002

Type: article

Abstract: The effect of alcohol consumption on the earnings of full‐time male workers is analysed using the Australian National Health Survey 1989–90. A multinomial logit choice model is used to explain workers’ choice of drinking status and to correct for selection bias in the earnings equation estimation. It is found that moderate drinking leads to a significant earnings premium relative to abstention and heavy drinking. The results are consistent with moderate drinking improving individual’s health and hence productivity and earnings.

Source: Economic Record

DOI: 10.1111/1475-4932.00041

Author: Garry F. Barrett

Institutions: The University of Sydney, UNSW Sydney

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being

Open Access status: green

OpenAlex ID: W2006417003

FWCI: 8.137

Cites: 21

Cited by: 78

Related to: 10