Alcohol Consumption and Human Capital: A Retrospective Study of the Literature

Abstract

Abstract. Grossman proposed an individual's health can be viewed as one aspect of their human capital. Following this line of thought a number of recent papers have reported a positive impact of alcohol consumption on earnings. The rationale for the existence of such a relationship is the positive impact of alcohol on physical and mental health. We conduct a meta-analysis to determine whether such factors as: the estimation technique, the presence of ex-drinkers in the sample, possible sample selection bias and publication bias may all contribute to these findings. An additional suggestion for the positive relationship between alcohol and wages is the presence of a common set of personality traits that determines drinking behaviour and also leads to higher earnings. We examine this relationship by reviewing the literature that investigates if the personality influencing aspects of alcohol consumption influences measures of human capital. We also survey the significant body of research that has examined how alcohol consumption has been found to influence educational outcomes and the work force participation of problem drinkers.

Adolescent alcohol use, sociability and income as a young adult

“…Several studies in the economics literature have found that gender differences are present in the relationship between alcohol use and labor market outcomes (Berger and Leigh, 1988; Dave and Kaestner, 2002; Kenkel and Ribar, 1994; Mullahy and Sindelar, 1991, 1996, 1997). In addition, drinkers in general, and sometimes heavy drinkers, tend to have higher earnings compared to abstainers or light drinkers (Berger and Leigh, 1988; Bray, 2005; French and Zarkin, 1995; Hamilton and Hamilton, 1997; Heien, 1996; Lye and Hirschberg, 2010; Zarkin et al, 1998). Several explanations are possible.…”

“…Alcohol may be a marker for personality traits that contribute to higher earnings (Lye and Hirschberg, 2010). For example, alcohol is positively associated with sociability (Cook et al , 1998).…”

Communicating Alcohol Narratives: Creating a Healthier Relationship with Alcohol

“…Rather, it seems that low to moderate alcohol consumption is a proxy for a range of personality traits that have a positive influence on human capital. A recent meta-analysis of studies that had reported a positive effect of alcohol consumption on earnings found this to be an artifact: First, it appeared that those who consumed large amounts of alcohol were less likely to be employed and therefore not in the studies; second, when the proportion of the abstainers among the participants was less than 28%, there was no beneficial effect of alcohol on wages (this only became apparent when the proportion of abstainers was greater than 28% and likely to include ex-drinkers); and, third, when accounting for the potential simultaneity of alcohol consumption and wages, the meta-analysis found no level of alcohol consumption that had a positive effect on wages (Lye & Hirschberg, 2010).…”

Efeitos da exposição aos fatores de risco comportamentais à saúde sobre o atraso escolar no Brasil

“…Adicionalmente, conforme Koch & Ribar (2001), o uso de álcool possui efeitos colaterais na escolaridade, pois tornam o investimento em educação menos produtivos. A perda de produtividade ocorreria, de acordo com Lye & Hirschberg (2010), através de perdas no estoque de saúde (física e mental) do capital humano.…”

“…Em termos empíricos, segundo Lye & Hirschberg (2010) e Cawley & Ruhm (2011, os efeitos do consumo de álcool, cigarro e outros tipos de drogas sobre os resultados educacionais têm sido frequentemente documentados na literatura internacional, especialmente as investigações sobre os impactos do uso de bebidas. Koch & Ribar (2001), a partir do painel de dados do NLSY 1979-1990 para pares de irmãos do mesmo sexo, encontram que as consequências do uso de bebidas alcoólicas na juventude sobre a educação é sensível as diferentes especificações econométricas.…”