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Full-Text Articles in Social and Behavioral Sciences
Unemployment, Alcohol, And Tobacco Use: Separating State Dependence From Unobserved Heterogeneity, Monica Deza
Unemployment, Alcohol, And Tobacco Use: Separating State Dependence From Unobserved Heterogeneity, Monica Deza
Center for Policy Research
Previous literature presents mixed evidence on the effect of alcohol consumption on labor market outcomes. On one hand, heavy alcohol consumption has been shown to have detrimental effects on labor market outcomes. On the other hand, moderate consumption is positively associated with wages and employment. Despite substantial reduced form evidence, previous literature has not been able to separately identify the causal pathways linking moderate versus heavy alcohol use to labor market performance due to the lack of natural experiments that only target moderate versus heavy drinking, as well as limitations of available structural methods that model state dependence and unobserved …