Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

The Study of the Impact of Alcohol Consumption on Wage Rate

Authors
Yichen Sun1, *, , Ruiqi Zhang2, *, , rqzhang21@ucla.edu
1University of California, San Diego, 9500 Gilman Dr, La Jolla, CA 92093, U.S.
2University of California, Los Angeles, 315 Portola Plaza, Los Angeles, CA 90095, U.S

These authors contributed equally.

*Corresponding author. Email:y4sun@ucsd.edu
Corresponding Authors
Yichen Sun, Ruiqi Zhangrqzhang21@ucla.edu
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.409How to use a DOI?
Keywords
Alcohol consumption; Employment; Wage rate; Instrumental variables
Abstract

Driving by the incentive to help policymakers design more appropriate decisions and providing individuals with more accurate direction about consuming alcohol, this study explores the impact of alcohol consumption on people’s employment attainment. The wage rate use is a specific measure for employment attainment. Using the data about the labour market outcomes, alcohol consumption, and assorted demographics for individuals comes from the National Longitudinal Survey of Youth (NLSY) 1989 and 1994, OLS regressions and Instrumental regressions are applied as approaches due to the endogenous nature of alcohol consumption. This study finds out that there is a significant and positive return of alcohol consumption on the wage rate. Specifically, there is an inverse U-shaped relationship between individuals’ drinking habits and their wage rate. In addition, the study explores the inverse U-shaped relationship separately for men and women and conclude the slight differences in the extreme points for different genders. The innovative points of our study are to overcome the endogenous nature of alcohol consumption measures and the differences in the relationship between drinking and wage rates for males and females.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
10.2991/aebmr.k.220307.409
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.409How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yichen Sun
AU  - Ruiqi Zhang
PY  - 2022
DA  - 2022/03/26
TI  - The Study of the Impact of Alcohol Consumption on Wage Rate
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2497
EP  - 2503
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.409
DO  - 10.2991/aebmr.k.220307.409
ID  - Sun2022
ER  -