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Published on: August 12, 2016
Employment impact of sugar-sweetened beverage taxes
Lisa M Powell1, Roy Wada, Joseph J Persky
1Lisa M. Powell, Roy Wada, and Frank J. Chaloupka are with the Institute for Health Research and Policy, University of Illinois, Chicago. Lisa M. Powell is also with the Division of Health Policy and Administration, School of Public Health, University of Illinois, Chicago. Joseph J. Persky and Frank J. Chaloupka are with the Department of Economics, University of Illinois, Chicago.
Objectives:
We assessed the impact of sugar-sweetened beverage (SSB) taxes on net employment.
Methods:
We used a macroeconomic simulation model to assess the employment impact of a 20% SSB tax accounting for changes in SSB demand, substitution to non-SSBs, income effects, and government expenditures of tax revenues for Illinois and California in 2012.
Results:
We found increased employment of 4406 jobs in Illinois and 6654 jobs in California, representing a respective 0.06% and 0.03% change in employment. Declines in employment within the beverage industry occurred but were offset by new employment in nonbeverage industry and government sectors.
Conclusions:
SSB taxes do not have a negative impact on state-level employment, and industry claims of regional job losses are overstated and may mislead lawmakers and constituents.
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