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Title: Economic Cost of Teen Drinking
Resulting in 1 citation.
1. Renna, Francesco
Economic Cost of Teen Drinking
Working Paper, Department of Economics, University of Akron, 2005
Cohort(s): NLSY79
Publisher: Department of Economics, University of Akron
Keyword(s): Alcohol Use; Endogeneity; High School Completion/Graduates; High School Diploma; Wage Levels

Permission to reprint the abstract has not been received from the publisher.

This paper analyzes the effect that heavy drinking has on the probability of graduating on-time from high school. This analysis was motivated by the empirical evidence that students who graduate on-time from high school earn more than students who graduate late. The analysis is conducted on students in their senior year of high school using data from the National Longitudinal Survey of Youth 1979. Importantly, this paper shows that the usual instruments used to correct for the endogeneity of the decision to drink are strong instrument only in the regression for women, but not for men. Finally this paper finds that heavy drinking decreases the probability of graduating on-time by 17.5 percent. Because graduating late decreases the hourly wage of women by $0.90, the annual cost of drinking computed for a full-time worker is about $315.
Bibliography Citation
Renna, Francesco. "Economic Cost of Teen Drinking." Working Paper, Department of Economics, University of Akron, 2005.