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Alcohol Consumption and Long-Term Labor Market Outcomes
Petri Böckerman1, Ari Hyytinen2, Terhi Maczulskij3
1Turku School of Economics, Labour Institute for Economic Research and IZA, Helsinki, Finland.
Health Economics
|December 5, 2015
Summary
Heavy alcohol consumption and quitting drinking are linked to significantly lower earnings and less work. Moderate drinking appears to be the labor market
Area of Science:
- Sociology
- Economics
- Public Health
Background:
- Alcohol consumption is a significant public health concern with potential socioeconomic impacts.
- Understanding the relationship between drinking patterns and labor market outcomes is crucial for policy development.
Purpose of the Study:
- To investigate the association between alcohol consumption levels and long-term labor market outcomes in Finnish adults.
- To control for genetic and shared environmental factors using twin data.
Main Methods:
- Utilized Finnish twin registry data linked with individual employment and earnings records.
- Measured alcohol consumption via self-reported weekly averages from surveys (1975, 1981, 1990).
- Analyzed average employment duration and earnings from 1990-2009, accounting for shared factors.
Main Results:
- Former and heavy drinkers exhibited approximately 20% lower earnings than moderate drinkers.
- Former drinkers worked, on average, one month less per year over the 20-year period.
- Findings remained robust after adjusting for education, health, and smoking habits.
Conclusions:
- Both cessation of drinking and heavy alcohol intake negatively impact long-term earnings and employment.
- Moderate alcohol consumption appears to be associated with more favorable labor market outcomes compared to abstention or heavy drinking.
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