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High School Alcohol Use and Young Adult Labor Market Outcomes Export

National Bureau of Economic Research Working Paper Series (September 2006), 12529.

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alcohol education

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Author contact info: Pinka Chatterji University at Albany Economics Department Business Administration 111A 1400 Washington Avenue Albany, NY 12222 Tel: 518/442-4746 E-Mail: pchatterji@albany.edu Jeffrey S. DeSimone Department of Economics University of Texas at Arlington 701 S. West St. Arlington, TX 76019 Tel: 817/272-3061 Fax: 817/272-3145 E-Mail: jdesimone@uta.edu We estimate the relationship between 10th grade binge drinking in 1990 and labor market outcomes in 2000 among National Educational Longitudinal Survey respondents. For females, adolescent drinking and adult wages are unrelated, and negative employment effects disappear once academic achievement is held constant. For males, negative employment effects and, more strikingly, positive wage effects persist after controlling for achievement as well as background characteristics, educational attainment, and adult binge drinking and family and job characteristics. Accounting for illegal drug use and other problem behaviors in 10th grade eliminates the unemployment effect, but strengthens the wage effect. As the latter is not explicable by the health, income or social capital justifications that are often used for frequently observed positive correlations between adult alcohol use and earnings, we conjecture that binge drinking conveys unobserved social skills that are rewarded by employers.


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